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 term describes a person's previous pattern of borrowing and repaying?

Notes receivable

Accounts receivable

Credit history

Allowance for doubtful accounts

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Verified step by step guidance

Understand the concept of 'Credit History': It refers to a record of a person's borrowing and repayment behavior, including details about loans, credit cards, and other financial obligations.

Differentiate between the terms provided: 'Notes receivable' refers to written promises for amounts to be received, 'Accounts receivable' refers to amounts owed by customers, and 'Allowance for doubtful accounts' is an estimate of uncollectible receivables. None of these terms describe borrowing and repayment patterns.

Recognize that 'Credit History' is the correct term because it specifically tracks an individual's financial behavior over time, including their ability to repay debts.

Understand the importance of credit history in financial accounting: It is used by lenders to assess the creditworthiness of individuals or businesses before extending credit.

Apply this knowledge to similar scenarios: When analyzing financial statements or evaluating credit risk, consider how credit history impacts decisions related to lending or extending credit.