ACCT Different types of receivables

Receivable — A right to receive cash in the future from a current transaction.

Creditor — The person or business that is owed money.

Debtor — The person or business that owes money.

Accounts Receivable — Money customers owe a business for goods or services bought on credit.

Trade Receivables — Another name for accounts receivable.

Notes Receivable — Written promises that another party will pay a specific amount of money, usually with interest.

Other Receivables — Receivables that do not fall under accounts receivable or notes receivable, such as interest receivable, dividends receivable, and taxes receivable.

Promissory Note — A written promise to pay a specified amount of money at a future date, usually with interest.

Maturity Date — The date when a note must be paid.

Principal — The original amount borrowed or loaned, before interest.

Interest — The amount paid for borrowing money; it is revenue for the lender and an expense for the borrower.

Interest Rate — The percentage used to calculate interest, usually stated as an annual rate.

Interest Period (Note Term) — The length of time over which interest is calculated.

Maturity Value — The total amount due when a note matures, including principal and interest.

Maker of the Note — The person or business that signs the note and promises to pay.

Payee of the Note — The person or business that will receive payment on the note.