Multiple Choice
The Real Estate Settlement Procedures Act (RESPA) prohibits all of the following practices except:
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7. Receivables and Investments
Types of Receivables
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT considered a type of receivable in financial accounting?
A
Inventory Receivable
B
Notes Receivable
C
Interest Receivable
D
Accounts Receivable
Verified step by step guidance1
Understand the concept of receivables: In financial accounting, receivables are amounts owed to a business by its customers or other parties. They are typically classified as current assets on the balance sheet.
Review the types of receivables: Common types of receivables include Accounts Receivable (amounts owed by customers for goods or services), Notes Receivable (formal written promises to pay a specific amount), and Interest Receivable (interest income earned but not yet received).
Analyze the term 'Inventory Receivable': Inventory is a physical asset that represents goods held for sale. It is not a type of receivable because it does not represent an amount owed to the business by another party.
Compare the options: Identify which of the listed items does not fit the definition of a receivable. Inventory Receivable is not a valid type of receivable in financial accounting.
Conclude: The correct answer is 'Inventory Receivable' because it is not considered a type of receivable in financial accounting.
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Types of Receivables practice set
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