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Warning
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Simple English definitions for legal terms
receivable
Read a random definition: in publicam vindictam
A quick definition of receivable:
Receivable: An amount of money that someone owes to a business. It means that the business is waiting to receive payment for something they have sold or done. For example, if you buy a toy from a store but don't pay for it right away, the store will have a receivable until you pay them.
A more thorough explanation:
Definition: Receivable is an adjective that means something is capable of being admitted or accepted, awaiting receipt of payment, or subject to a call for payment. As a noun, it refers to an amount owed, especially by a business's customer.
For example, a company may have accounts receivable, which are amounts owed by their customers for goods or services provided. These accounts are considered assets on the company's balance sheet. Another example is a note receivable, which is a written promise to pay a certain amount of money at a future date.
Unrealized receivables are amounts earned but not yet received. These have no income-tax basis for cash-basis taxpayers. An example of an unrealized receivable is a company that has completed work for a customer but has not yet received payment for it.
Overall, receivable refers to money that is owed to a person or business, and it is important for companies to keep track of their accounts receivable to ensure they are being paid for their services or products.