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 one of the following assets is generally not considered a type of receivable?

Notes Receivable

Interest Receivable

Accounts Receivable

Inventory

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Understand the concept of receivables: Receivables are amounts owed to a company by customers or other parties. They are considered assets because they represent future cash inflows.

Identify the types of receivables listed: Notes Receivable, Interest Receivable, and Accounts Receivable are all forms of receivables. They represent amounts owed to the company for various reasons, such as loans, accrued interest, or sales made on credit.

Analyze the nature of Inventory: Inventory refers to goods or materials a company holds for sale or production. It is classified as a current asset but is not considered a receivable because it does not represent an amount owed to the company.

Compare Inventory with receivables: Unlike receivables, Inventory does not involve a claim on cash or payment from another party. It is a tangible asset that will be converted into cash through sales, not through collection from a debtor.

Conclude that Inventory is not a type of receivable: Based on the definitions and characteristics, Inventory is generally not considered a type of receivable, making it the correct answer to the question.