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 classified as a trade receivable?

Notes receivable from employees

Interest receivable

Tax refund receivable

Accounts receivable

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Understand the concept of trade receivables: Trade receivables are amounts owed to a business by its customers for goods or services provided on credit. They are directly related to the company's primary operations.

Analyze the options provided: Notes receivable from employees, interest receivable, and tax refund receivable are not directly related to the sale of goods or services to customers. These are classified under other types of receivables.

Focus on accounts receivable: Accounts receivable represents amounts owed by customers for goods or services sold on credit, making it a trade receivable.

Differentiate trade receivables from other receivables: Trade receivables arise from the core business activities, while other receivables (e.g., interest receivable or tax refund receivable) arise from non-operational activities.

Conclude that accounts receivable is the correct classification for trade receivables, as it directly relates to the company's sales transactions with customers.