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

A quote of 5.90 - 5.75 is most likely a quote for which of the following types of receivables or securities?

Bonds

Accounts Receivable

Notes Receivable

Interest Receivable

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Verified step by step guidance

Understand the context of the quote: A quote of 5.90 - 5.75 typically refers to the bid-ask spread, which is common in financial markets for securities such as stocks or bonds. This spread represents the difference between the price a buyer is willing to pay (bid) and the price a seller is willing to accept (ask).

Identify the types of receivables or securities listed in the options: Bonds, Accounts Receivable, Notes Receivable, and Interest Receivable. Note that receivables are amounts owed to a company, while bonds are tradable financial instruments issued by entities to raise capital.

Analyze the characteristics of each option: Bonds are traded in financial markets and typically have bid-ask spreads. Accounts Receivable, Notes Receivable, and Interest Receivable are not traded in markets and do not have bid-ask spreads; they are internal accounting items.

Recognize that the bid-ask spread (5.90 - 5.75) is indicative of a market-traded security, which aligns with bonds. Receivables are not quoted in this manner as they are not market-traded instruments.

Conclude that the quote of 5.90 - 5.75 is most likely a quote for bonds, as this type of financial instrument is traded in markets and has bid-ask spreads.