Receivables for Dummies
noun
pronunciation: rɪ'sivʌbʌlzWhat does Receivables really mean?
Receivables is a term that we often hear in the world of finance and business. It's a word used to describe the money owed to a company or person for goods or services that they have provided. Imagine that you have a small candy shop, and you have a few customers who buy candy from you but cannot pay for it right away. The amount of money they owe you is called receivables.
Receivables can include a variety of things, like the money owed to a company by its customers, or even the money owed to an individual for lending someone money. It's like keeping track of your IOUs, but on a larger scale.
Let's say a company sells products to another company and allows them to pay at a later date. The amount of money that the second company owes to the first one for those products is considered receivables. The first company can keep track of these receivables, just like you would write down the candy people owe you, to make sure that they get paid eventually.
Receivables can also include other forms of payment, like credit card debt or unpaid bills. So, if you go to a store and buy something with your credit card, the store has to wait for the credit card company to pay them the money. During this waiting period, the money that the credit card company owes to the store is considered a receivable.
Think of it this way: let's say your friend borrowed $10 from you to buy a toy, and they promised to pay you back next week. Until your friend gives you your money back, that $10 is considered your "receivable." It's money that you are expecting to receive. Similarly, companies and individuals keep track of receivables to know how much money they are owed and when they can expect to receive it.
So, in a nutshell, receivables are the money that is owed to a person or a company for goods or services provided. It's like a big IOU list for businesses, helping them keep track of the money they're supposed to receive.
Receivables can include a variety of things, like the money owed to a company by its customers, or even the money owed to an individual for lending someone money. It's like keeping track of your IOUs, but on a larger scale.
Let's say a company sells products to another company and allows them to pay at a later date. The amount of money that the second company owes to the first one for those products is considered receivables. The first company can keep track of these receivables, just like you would write down the candy people owe you, to make sure that they get paid eventually.
Receivables can also include other forms of payment, like credit card debt or unpaid bills. So, if you go to a store and buy something with your credit card, the store has to wait for the credit card company to pay them the money. During this waiting period, the money that the credit card company owes to the store is considered a receivable.
Think of it this way: let's say your friend borrowed $10 from you to buy a toy, and they promised to pay you back next week. Until your friend gives you your money back, that $10 is considered your "receivable." It's money that you are expecting to receive. Similarly, companies and individuals keep track of receivables to know how much money they are owed and when they can expect to receive it.
So, in a nutshell, receivables are the money that is owed to a person or a company for goods or services provided. It's like a big IOU list for businesses, helping them keep track of the money they're supposed to receive.
Revised and Fact checked by Robert Williams on 2023-10-29 16:00:28
Receivables In a sentece
Learn how to use Receivables inside a sentece
- When you borrow a toy from your friend and promise to give it back later, that toy becomes your 'receivable'.
- Imagine you work at a lemonade stand and sell lemonade to people. The money that people owe you for the lemonade is called 'receivables'.
- If your parents lend money to someone and that person promises to pay them back later, that money becomes your parents' 'receivable'.
- When you lend your favorite book to your classmate and they promise to return it after reading, that book becomes your 'receivable'.
- If your dad sells his painting to a museum and they promise to pay him in 30 days, that money from the museum is called 'receivables'.
Receivables Hypernyms
Words that are more generic than the original word.
Receivables Usage Of
Words that the original word is a domain usage of.