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 type of receivable in financial accounting?

Accounts Payable

Prepaid Expenses

Accounts Receivable

Inventory

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Verified step by step guidance

Understand the concept of receivables: In financial accounting, receivables represent amounts owed to a company by customers or other parties for goods or services provided. They are considered assets because they are expected to be converted into cash in the future.

Analyze the options provided: Review each term to determine whether it fits the definition of a receivable. For example, Accounts Payable represents amounts the company owes to suppliers, which is a liability, not a receivable.

Evaluate Prepaid Expenses: Prepaid Expenses are payments made in advance for goods or services to be received in the future. These are classified as assets but are not receivables because they do not represent amounts owed to the company.

Consider Inventory: Inventory refers to goods held for sale or production. It is classified as an asset but does not represent amounts owed to the company, so it is not a receivable.

Identify Accounts Receivable: Accounts Receivable represents amounts owed to the company by customers for goods or services provided on credit. This fits the definition of a receivable and is classified as such in financial accounting.