Receivables
Money owed to company by customers for goods/services delivered.
Formula
Receivables = Money owed by customers (unpaid invoices)
Real World
Rolls-Royce supplies jet engines to airlines on credit; the unpaid invoices from British Airways or Emirates sit on Rolls-Royce's balance sheet as receivables until payment is received, sometimes 30–90 days later.
Exam Focus
High receivables can signal cash flow problems — in 'analyse' questions, link rising receivables to working capital pressure.
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