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?

Prepaid Expenses

Notes Receivable

Interest Receivable

Accounts Receivable

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Verified step by step guidance

Step 1: Understand the concept of receivables in financial accounting. Receivables are amounts owed to a company by 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: Notes Receivable, Interest Receivable, and Accounts Receivable. These are all examples of receivables because they represent amounts owed to the company.

Step 3: Analyze the term 'Prepaid Expenses.' Prepaid Expenses are payments made in advance for goods or services to be received in the future. They are not considered receivables because they do not represent amounts owed to the company; instead, they are classified as assets under 'Prepaid Expenses' on the balance sheet.

Step 4: Compare Prepaid Expenses with the other options. While Notes Receivable, Interest Receivable, and Accounts Receivable involve amounts owed to the company, Prepaid Expenses involve payments made by the company, which distinguishes them from receivables.

Step 5: Conclude that Prepaid Expenses are NOT considered a type of receivable in financial accounting, as they do not represent amounts owed to the company but rather advance payments for future benefits.