Legal Definitions - receivable

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.