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

In financial accounting, where is information about your vendors and their transactions typically recorded?

Accounts Receivable Ledger

Cash Receipts Journal

Inventory Ledger

Accounts Payable Ledger

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Verified step by step guidance

Understand the purpose of each ledger or journal mentioned in the options. For example, the Accounts Receivable Ledger tracks amounts owed to the company by customers, while the Accounts Payable Ledger tracks amounts the company owes to vendors.

Recognize that vendor-related transactions typically involve purchases on credit, payments to vendors, and any adjustments related to vendor accounts.

Recall that the Accounts Payable Ledger is specifically designed to record and track all transactions with vendors, including invoices received, payments made, and outstanding balances.

Eliminate the incorrect options by matching their purposes to the context of the question. For instance, the Cash Receipts Journal records cash inflows, and the Inventory Ledger tracks inventory-related details, neither of which directly pertains to vendor transactions.

Conclude that the correct place to record vendor information and transactions is the Accounts Payable Ledger, as it is specifically tailored for this purpose.