Multiple Choice
When you fail to repay a loan on time, you are referred to as being in:
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7. Receivables and Investments
Types of Receivables
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Receivables are typically classified as which of the following types?
A
Trade payables, accrued expenses, and deferred revenues
B
Short-term investments, long-term investments, and cash equivalents
C
Accounts receivable, notes receivable, and other receivables
D
Current assets, fixed assets, and intangible assets
Verified step by step guidance1
Understand the concept of receivables: Receivables represent amounts owed to a company by customers or other parties, typically arising from credit sales or other transactions.
Identify the types of receivables: Receivables are generally classified into three main categories: accounts receivable, notes receivable, and other receivables.
Clarify accounts receivable: These are amounts owed by customers for goods or services provided on credit. They are typically short-term and recorded as current assets on the balance sheet.
Explain notes receivable: These are formal written promises to pay a specific amount of money at a future date, often including interest. They can be short-term or long-term depending on the maturity date.
Define other receivables: This category includes miscellaneous amounts owed to the company, such as interest receivable, tax refunds, or advances to employees, which do not fall under accounts or notes receivable.
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Types of Receivables practice set
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