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Receivables are also known as trade credit or debtors. These are the components of current assets. When a firm sells its product in credit, account receivables are generated. It represents money owed to a business by its customers. However, it is shown on the balance sheet of the company as an asset.
That was all about receivables, now what receivable management is. Going by the definition, maintaining records of what customers buy on credit from a company is called receivables management. Account receivable is the money receivable in some scheduled date for the credit sale of goods and services at current. The amount that the company be indebted is recorded in its general ledger account entitled accounts receivable. The objectives of account receivables are -
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Receivables Management - Related Questions
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