Is receivable or recoverable same thing
This query is : Resolved
31 October 2024
is receivable or recoverable same thing, is current assets.
01 November 2024
While they are related, there are key differences between the two, especially when classifying them as current assets.
Accounts Receivable (Receivable):
Accounts receivable represents the amount of money customers owe to the business for goods or services sold on credit. It is a current asset that expects to be collected within a short period, typically within a few months or within the company's operating cycle.
Examples:
Sales on credit
Invoices pending payment
Recoverable Amounts (Recoverable):
Recoverable amounts, on the other hand, refer to funds or assets that a business expects to recover or reclaim from various sources, often due to prior payments, refunds, or reimbursements. These may not necessarily arise from sales transactions.
Examples:
Tax refunds
Insurance claims
Deposits etc.
Accounts Receivable (Receivable):
Accounts receivable represents the amount of money customers owe to the business for goods or services sold on credit. It is a current asset that expects to be collected within a short period, typically within a few months or within the company's operating cycle.
Examples:
Sales on credit
Invoices pending payment
Recoverable Amounts (Recoverable):
Recoverable amounts, on the other hand, refer to funds or assets that a business expects to recover or reclaim from various sources, often due to prior payments, refunds, or reimbursements. These may not necessarily arise from sales transactions.
Examples:
Tax refunds
Insurance claims
Deposits etc.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
