Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which type of receivable is represented by claims payable to a disability income insured?

Accounts Receivable

Interest Receivable

Notes Receivable

Insurance Receivable

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Verified step by step guidance

Step 1: Understand the concept of receivables. Receivables are amounts owed to a company or entity by customers or other parties. They are classified based on the nature of the claim or the source of the receivable.

Step 2: Review the types of receivables mentioned in the problem: Accounts Receivable, Interest Receivable, Notes Receivable, and Insurance Receivable. Each type represents a specific category of claims.

Step 3: Clarify the nature of 'Insurance Receivable.' This type of receivable arises when an insurance company owes a payment to the insured party, such as claims payable under a disability income insurance policy.

Step 4: Compare 'Insurance Receivable' with other types of receivables. For example, Accounts Receivable typically represents amounts owed by customers for goods or services, Interest Receivable represents interest earned but not yet received, and Notes Receivable represents amounts owed under formal promissory notes.

Step 5: Conclude that claims payable to a disability income insured are categorized as 'Insurance Receivable' because they represent amounts owed by an insurance company under the terms of the disability income insurance policy.