Trade Payables and Receivables Flashcards
1
Q
What is a trade receivable?
A
The amount owed to a business by a customer from sales that were made on credit where the company expects to receive payment in the future
2
Q
What is a trade payable?
A
The amount owed to suppliers by businesses from goods/services that have been received but not paid for - short-term debt that was paid for on credit by the firm
