Final answer:
A trade receivable refers to money owed to a company as a result of its normal operations, while a non-trade receivable refers to money owed to a company that is not directly related to its core business activities.
Step-by-step explanation:
In business, a trade receivable refers to money owed to a company as a result of its normal operations. These are typically payments due from customers or clients for goods or services provided on credit. On the other hand, a non-trade receivable refers to money owed to a company that is not directly related to its core business activities. This could include things like loans, interest receivables, dividends receivables, or tax receivables.
For example, let's say a manufacturing company sells its products to customers on credit terms. The amount of money owed by these customers for the products purchased would be considered trade receivables. However, if the company also has investments in stocks and bonds, any dividends receivable from those investments would be considered non-trade receivables.