Notes receivable

notes receivable
An asset representing the right to receive the principal amount contained in a written promissory note. Principal that is to be received within one year of the balance sheet date is reported as a current asset.

Notes Receivable:
Written interest-bearing promises from persons or businesses agreeing to pay certain amounts at certain times.
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ALLOWANCE FOR NOTES RECEIVABLE LOSSES - an account maintained at a level considered adequate to provide...
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS - see ALLOWANCE FOR BAD DEBTS.

NOTES RECEIVABLE
Notes receivable are promissory notes that the company has accepted from its debtors. Most promissory notes pay interest. Those that are due within a year are shown under "Current Assets.

NOTES RECEIVABLE - An asset account reflecting amounts owing to the state from an unconditional written promise to pay a certain sum of money on demand or at a fixed or determinable time.

Notes Receivable
A written promise from a client or customer to pay a definite amount of money on a specific future date is called a note receivable.

Notes receivable are amounts due to a corporation because of purchases of goods or services on credit or a loan arrangement that must be evidenced by a legal document called a note.
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Notes Receivable
5,000
A detailed discussion of the sales and discounting of note receivable can be found in the Related Finance Company section.

Examples of assets are cash, marketable securities, accounts and notes receivable, inventory of merchandise, real estate, machinery and office equipment, natural resources, and intangibles such as patents, legal claims and agreements, ...

It applies to both notes payable and notes receivable. The imputed interest rate is the one the borrower would normally incur in a similar transaction. Assume a $10,000 one-year noninterest-bearing note payable was issued on 1/1/2005.

Examples of noncurrent assets include fixed asset , such as real estate, machinery, and other equipment; leasehold improvement ; intangible asset , such as goodwill, patents, and trademarks; notes receivable after one year; other investments; ...

If you are in the business of lending money or if you are paid interest on notes receivable that you were given by your customers, you would report that interest income on your Schedule C or C-EZ.

Other examples of controlling accounts and their subsidiary ledgers include Accounts Payable (accounts payable subsidiary ledger), Notes Payable (notes payable subsidiary ledger), Notes Receivable (notes receivable subsidiary ledger), ...

Items not included in the definition of cash are post-dated checks, IOUs, and notes receivable. The cash on hand and cash on deposit in the bank are shown in the balance sheet as one figure.

Acid-test ratio: A measure of a corporation's liquidity, calculated by adding cash, cash equivalents, and accounts and notes receivable, and dividing the result by total current liabilities.

The total amount your assets (stocks, bonds, bank accounts, home equity, real estate, personal property, business receivables, notes receivable, etc.) minus the total amount of your liabilities (outstanding loans owed, credit card balances, ...

ACID TEST RATIO " A more stringent test of a corporation's liquidity than current ratio. It is calculated by adding cash, cash equivalents, and accounts and notes receivable and dividing that sum by the total current liabilities.

It is a stricter test than if the current ratio is used. The ratio is calculated by dividing the sum of cash, cash equivalents, accounts receivable and notes receivable by the total current liabilities.

ESTATE:  All assets owned by an individual at the time of his or her death: funds, personal effects, interest in business enterprises, titles to property and evidences of ownership (i.e., stocks, bonds, mortgages owned and notes receivable).

The estate includes all funds, personal effects, interest in business enterprises, titles to property, real estate and chattels, and evidence of ownership, such as stocks bonds and mortgages owned, and notes receivable.

See also: Expense, Acquisitions, Banks, Current ratio, Bills