Question

QUESTION 10

Explain the following:

Income receivable


Is an expense which was paid during a certain reporting period, but which relates to a future period.

An expense which relates to a certain reporting period but which is still unpaid at the end of that reporting period.


An income prepaid is revenue received during a ceratin reporting period but which relates to a future period.


A revenue which relates to a fixed reporting period, but is still to be received at the end of the reporting period concerned

Answer 1

[AI-generated answer — Bot GPT 3.5]

Income receivable refers to revenue that has been earned in a specific reporting period but has not yet been received by the company. This means that the company has provided goods or services to a customer, but the customer has not yet paid for them. Income receivable is considered an asset on the company's balance sheet until it is received. It is important for companies to track income receivable to ensure that they are managing their cash flow effectively and to accurately reflect their financial performance.