1
Trade Receivable is the sum of Debtors and Bills Receivable, representing the total amount due from customers for goods sold or services rendered in the normal course of business.
2
Trade Payable is the sum of Creditors and Bills Payable, representing the total amount the organization owes to suppliers for credit purchases.
3
Expenses are short-term costs incurred within an accounting period to generate revenue, whereas Expenditures are longer-term investments or costs for acquiring assets.
4
Expenses are classified into Prepaid Expenses (paid in advance, treated as current assets) and Outstanding Expenses (incurred but unpaid, treated as current liabilities).
5
Income is a broader term that includes profits from both operating and non-operating activities, whereas Profit strictly refers to earnings derived from operating activities.
6
Gross Profit is calculated by subtracting direct costs from revenue, while Net Profit accounts for total revenue minus total expenses.