Question

what is trade receivable

Answer 1

Trade receivable refers to the amount of money that a customer owes a company for goods and services that have been provided on credit. It is an important component of a company's accounts receivable and represents revenue that has been recognized but not yet received in cash. Trade receivables are considered to be current assets on a company's balance sheet and are typically collected within a short period of time, such as 30, 60, or 90 days, depending on the agreed upon terms of the sale. Managing trade receivables effectively is important for maintaining cash flow and overall financial stability.