Multiple Choice
Which of the following is a long-term consequence of making late payments on your bills?
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7. Receivables and Investments
Types of Receivables
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Which of the following would be considered part of an employee’s salary receivable?
A
Notes receivable from suppliers
B
Unpaid wages earned by the employee but not yet paid by the company
C
Accounts receivable from customers
D
Interest receivable on investments
Verified step by step guidance1
Understand the concept of 'salary receivable': Salary receivable refers to unpaid wages earned by an employee for work performed but not yet paid by the employer. It is a current asset for the employee and represents an obligation for the company.
Analyze the options provided: The problem lists several types of receivables, such as notes receivable from suppliers, accounts receivable from customers, and interest receivable on investments. These are unrelated to an employee's salary receivable, as they pertain to other financial transactions.
Focus on unpaid wages: Unpaid wages earned by the employee but not yet paid by the company directly align with the definition of salary receivable. This is the correct category for salary receivable.
Eliminate irrelevant options: Notes receivable from suppliers, accounts receivable from customers, and interest receivable on investments are not related to an employee's salary. These are receivables tied to business operations or investments, not employee compensation.
Conclude that unpaid wages earned but not yet paid are the correct answer: This is the only option that fits the definition of salary receivable, as it represents compensation owed to the employee by the company.
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