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 considered a type of receivable in financial accounting?

Notes Receivable

Prepaid Rent

Interest Receivable

Accounts Receivable

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

Review the types of receivables listed: Notes Receivable, Interest Receivable, and Accounts Receivable are all examples of receivables because they represent amounts owed to the company.

Analyze Prepaid Rent: Prepaid Rent is not a receivable. It is classified as a prepaid expense, which is an asset representing payment made in advance for future benefits (e.g., use of property). It does not involve amounts owed to the company.

Compare Prepaid Rent to the other options: Unlike receivables, Prepaid Rent does not arise from credit sales or lending activities. It is an advance payment for a service or benefit, not an amount owed to the company.

Conclude that Prepaid Rent is not a type of receivable: Based on the definitions and classifications, Prepaid Rent is the correct answer to the question as it does not fit the category of receivables.