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 of the following is NOT a type of receivable in financial accounting?

Accounts Receivable

Notes Receivable

Interest Receivable

Inventory

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Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a company by customers or other parties, typically as a result of sales or lending activities. They are classified as assets on the balance sheet.

Identify the types of receivables: Common types of receivables include Accounts Receivable (amounts owed by customers for goods or services sold on credit), Notes Receivable (formal written promises to pay a specific amount at a future date), and Interest Receivable (interest income earned but not yet received).

Analyze the given options: Accounts Receivable, Notes Receivable, and Interest Receivable are all valid types of receivables in financial accounting. These represent amounts owed to the company and are recorded as assets.

Evaluate the term 'Inventory': Inventory refers to goods available for sale or raw materials used in production. It is classified as a current asset but is not considered a receivable because it does not represent an amount owed to the company.

Conclude that 'Inventory' is NOT a type of receivable: Inventory is distinct from receivables and does not fall under the category of amounts owed to the company. Therefore, it is the correct answer to the question.