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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Daley Company prepared the following aging of receivables analysis at December 31. Which type of receivable is most likely being analyzed in this aging schedule?

Interest Receivable

Accounts Receivable

Notes Receivable

Advances to Employees

Previous problemNext problem

Verified step by step guidance

Understand the concept of an aging schedule: An aging schedule is a tool used to categorize accounts receivable based on the length of time they have been outstanding. It helps businesses assess the likelihood of collecting these receivables and estimate bad debt expenses.

Identify the type of receivable being analyzed: Aging schedules are typically used for Accounts Receivable because they represent amounts owed by customers for goods or services provided on credit. These receivables are subject to collection risk and require monitoring.

Eliminate other options: Interest Receivable, Notes Receivable, and Advances to Employees are not typically analyzed using an aging schedule. Interest Receivable represents accrued interest, Notes Receivable are formal written promises to pay, and Advances to Employees are prepayments, none of which require aging analysis.

Recognize the purpose of the aging schedule: The aging schedule helps businesses evaluate the collectability of Accounts Receivable and determine the allowance for doubtful accounts, which is a key component of financial reporting.

Conclude that the type of receivable being analyzed in the aging schedule is Accounts Receivable, as it aligns with the purpose and methodology of the aging analysis.