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 considered a type of receivable in financial accounting?

Notes Receivable

Accounts Receivable

Inventory Receivable

Interest Receivable

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Understand the concept of receivables: Receivables in financial accounting represent amounts owed to a company by customers or other parties. They are considered assets because they are expected to be converted into cash in the future.

Identify the types of receivables: Common types of receivables include Notes Receivable (formal written promises to pay), Accounts Receivable (amounts owed by customers for goods or services provided), and Interest Receivable (interest income earned but not yet received).

Analyze the term 'Inventory Receivable': Inventory is classified as a current asset but is not considered a receivable. Receivables are specifically related to amounts owed to the company, whereas inventory represents goods held for sale.

Compare the options provided: Notes Receivable, Accounts Receivable, and Interest Receivable are all legitimate types of receivables. Inventory Receivable, however, is not a recognized category in financial accounting.

Conclude that 'Inventory Receivable' is NOT considered a type of receivable in financial accounting, as it does not represent an amount owed to the company.