Question

what is the difference between trade receivables andaccount receivables,and similarly, the difference between tradepayables and account payables?

Answer 1

Dear Student,

Basically, both these terms are used interchangeably. That is, trade receivables are commonly known as account receivables while trade payables are regarded as accounts payable.

Accounts receivables are the current assets of the company generally arising from the sale of goods to customers on credit.

On the contrary, accounts payable are the current liabilities of the company generally arising from the purchase of inputs from the suppliers on credit.

Hope this clarifies your doubt.
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