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 an example of an 'other current asset'?

Interest Receivable

Prepaid Expenses

Accounts Receivable

Short-term Notes Receivable

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Verified step by step guidance

Understand the concept of 'other current assets': These are assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer, but do not fall under typical categories like cash, accounts receivable, or inventory.

Review the examples provided: Interest Receivable, Prepaid Expenses, Accounts Receivable, and Short-term Notes Receivable. Determine which of these items does not fit the definition of 'other current assets'.

Recognize that 'Accounts Receivable' is a distinct category of current assets and is not classified as an 'other current asset'. It is a primary current asset that represents amounts owed to the company by customers for goods or services provided on credit.

Compare the remaining options: Interest Receivable, Prepaid Expenses, and Short-term Notes Receivable. These items are typically classified as 'other current assets' because they do not fall under the main categories of cash, accounts receivable, or inventory.

Conclude that the correct answer is 'Accounts Receivable' because it is not an example of an 'other current asset' but rather a primary current asset category.