Multiple Choice
Which of the following terms refers to monies owed to a patient from the provider?
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7. Receivables and Investments
Types of Receivables
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All of the following are types of receivables except:
A
Accounts payable
B
Interest receivable
C
Notes receivable
D
Accounts receivable
Verified step by step guidance1
Step 1: Understand the concept of receivables. Receivables are amounts owed to a company by its customers or other parties, typically resulting from sales or lending activities. They are considered assets on the balance sheet.
Step 2: Review the types of receivables listed in the problem. Common types of receivables include 'Accounts receivable,' which represents amounts owed by customers for goods or services sold on credit; 'Notes receivable,' which are formal written promises to pay a specific amount; and 'Interest receivable,' which represents interest income earned but not yet received.
Step 3: Identify the term that does not fit the category of receivables. 'Accounts payable' is a liability, not an asset. It represents amounts a company owes to suppliers or creditors for goods or services purchased on credit.
Step 4: Compare 'Accounts payable' with the other options. While receivables are assets, 'Accounts payable' is a liability and is recorded on the balance sheet under liabilities, not assets.
Step 5: Conclude that 'Accounts payable' is not a type of receivable because it represents an obligation to pay rather than an amount to be received.
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