Accounts receivable are usually current assets that arise from selling merchandise or providing services to customers on credit. Accounts receivable are also known as trade receivables. Receivables is the term that refers to both trade receivables and nontrade receivables.
Nontrade receivables are receivables other than accounts receivable. Some examples of nontrade receivables include interest receivable, income tax receivable, insurance claims receivable, and receivables from employees.
