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 accounts is classified as an asset account related to receivables?

Allowance for Doubtful Accounts

Accounts Receivable

Sales Revenue

Interest Income

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Verified step by step guidance

Understand the classification of accounts: In financial accounting, accounts are categorized into assets, liabilities, equity, revenues, and expenses. Asset accounts represent resources owned by the company that provide future economic benefits.

Focus on receivables: Receivables are amounts owed to the company by customers or other parties, typically resulting from credit sales or loans. These are classified as assets because they represent future cash inflows.

Analyze each option: Evaluate whether each account listed is an asset account related to receivables. For example, 'Accounts Receivable' is a direct asset account representing amounts owed by customers, while 'Allowance for Doubtful Accounts' is a contra-asset account that reduces the value of receivables.

Exclude non-asset accounts: 'Sales Revenue' and 'Interest Income' are revenue accounts, not asset accounts. They represent earnings rather than resources owned by the company.

Conclude with the correct classification: Based on the analysis, 'Accounts Receivable' is the correct answer as it is an asset account directly related to receivables.