Trade Receivables
Accounting glossary · Understand, connect, apply
Trade receivables arise from the entity’s ordinary sales of goods or services on credit. They commonly include customer accounts and notes arising from those sales.
Example
A wholesaler invoices a customer for goods delivered and records a trade receivable.
Remember the difference
A loan to an employee or a tax refund is generally not a trade receivable merely because money is owed to the business.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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