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Differences between Notes Receivable and Accounts Receivable

1. What are the differences between Notes Receivable and Accounts Receivable?
2. What are the benefits of disposing of Accounts Receivable?
3. What is the criterion for capitalizing a cost as opposed to expensing a cost?
4. What are the benefits of effective asset management?
5. What is the rationale for disclosing assets separately on the balance sheet?

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1. What are the differences between Notes Receivable and Accounts Receivable?
Accounts receivable is an order to pay a certain sum of money, wheres notes receivable is a promise to pay ( it is a promissory note)
A creditor draws accounts receivable, whereas notes receivable is drawn by a debtor.
In accounts receivable there are three parties - drawer, drawee and payee. In notes receivable there are two parties - maker and payee.
Accounts receivable must be accepted by the drawee. But in case of notes receivable, it is not necessary.

2. What are the benefits of disposing of Accounts Receivable?
The benefits of disposing account receivable are that the organization will get cash. It will increase the cash inflow of ...

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This explains the differences between Notes Receivable and Accounts Receivable

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