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Unformatted text preview: Accounts receivable and notes receivable that result from company sales are called trade receivables , but there are other types of receivables as well. For example, interest revenue from notes or other interest-bearing assets is accrued at the end of each accounting period and placed in an account named interest receivable . Wage advances, formal loans to employees, or loans to other companies create other types of receivables. If significant, these nontrade receivables are usually listed in separate categories on the balance sheet because each type of nontrade receivable has distinct risk factors and liquidity characteristics. Receivables of all types are normally reported on the balance sheet at their net realizable value , which is the amount the company expects to receive in cash....
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- Fall '10