What is an advance receivable?
Herein, what are loans receivable?
Loans receivable is an account in the general ledger of a lender, containing the current balance of all loans owed to it by borrowers. This is the primary asset account of a lender.
Beside above, what is employee advance? Advance to employee or officer (employee advance) represents a cash payment (loan) made by the employer for the business expenses that are anticipated to be incurred by the employee or officer on behalf of the employer; and the employee is obligated to prove business expenses to the employer.
People also ask, what is the meaning of advance payment?
An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery.
What is the difference between advance payment and prepayment?
Any payment made in advance can be considered a prepayment. A prepayment is not dissimilar to a deposit, but generally falls under a more set time period for fulfillment of the goods or service purchased. A prepayment is a full payment in advance.