Definition
Accounts receivable represent amounts owed to a company by customers or clients for goods sold or services rendered on credit. Accounts receivable arise from credit sales, where customers are allowed to pay at a later date under agreed-upon terms. Managing accounts receivable effectively is essential for maintaining cash flow and liquidity, as well as minimizing bad debts and credit risk. Accounts receivable are recorded as assets on the balance sheet and are typically collected within a specified period.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.