Accounting theory : What are the differences between ...?

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What are the different between Trade payable and other payable?

Trade Payables refers to buying of the INVENTORY on CREDIT
Other Payabes refers to buying of items other than inventory, such as NON CURRENT ASSETS on CREDIT

What are the different between Trade receivable and other receivable?


Trade receivables refers to selling of the INVENTORY  on CREDIT
Other receivables refers to selling of the items other than inventory such as NON CURRENT ASSET on CREDIT.

What the different between bank overdraft and bank loan?


Bank overdraft is also known as short term borrowing. It is an overdrawn of money from the business bank account.  The bank will normally charge a higher interest rate for the overdrawn amount.   This item will appear as a Current Liability in the Statement of financial position.  

Bank loan is also known as long term borrowing. To get a bank loan, the business will need to apply with all the forms and documents showing the business profitability and liquidity, the bank will then decide whether to grant the loan to the business.  More adminstative work and time needed to apply for a bank loan. The interest will charge on the sum borrowed.  This item will appear as a Non Current Liability in the Statement of financial position.



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