In the wobbly and often perplexing world of accounting, trade debtors (aka trade receivables) are somehow made to sound like respectable high society members. They’re those charming characters that owe your business money for goods or services already supplied. But are they really your financial saviors or just another financial headache?
The Basics: Who Let the Cows Out? 🐄
Think of trade debtors as your friendly neighborhood procrastinators who haven’t paid their bills yet. But you still love them because one fine day, they’ll cough up the money. And when they do, it’s like a family reunion where everyone brings cash instead of casseroles.
Visualize This: A Dairy Example
classDiagram
Class Business {
+String provideGoodsAndServices()
+String hopeToGetPaid()
}
Class TradeDebtors {
-int outstandingBalance
-String procrastinationReason
+payUp()
}
Business
