Explain the following:
Income receivable
Is an expense which was paid during a certain reporting period, but which relates to a future period.
An expense which relates to a certain reporting period but which is still unpaid at the end of that reporting period.
An income prepaid is revenue received during a ceratin reporting period but which relates to a future period.
A revenue which relates to a fixed reporting period, but is still to be received at the end of the reporting period concerned.
1 answer
Income receivable refers to revenue that has been earned during a specific reporting period but has not yet been received by the company by the end of that reporting period. This means that the company has provided goods or services to a customer, but payment has not been received yet. This income will be recorded as an asset on the company's balance sheet until it is received.
1 answer