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

Which type of receivable requires each executive department and agency to evaluate the creditworthiness of an individual before extending credit?

Loans Receivable

Notes Receivable

Interest Receivable

Accounts Receivable

Previous problemNext problem

Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a business or entity by customers or other parties. They are classified into different types based on the nature of the transaction.

Identify the types of receivables mentioned in the problem: Loans Receivable, Notes Receivable, Interest Receivable, and Accounts Receivable. Each type has specific characteristics and requirements.

Focus on the requirement to evaluate creditworthiness: This process involves assessing the ability of an individual or entity to repay the debt. It is typically associated with receivables that involve a formal credit extension or loan agreement.

Analyze each type of receivable: Loans Receivable and Notes Receivable often require creditworthiness evaluation because they involve formal agreements and significant financial risk. Interest Receivable and Accounts Receivable generally do not require such evaluation as they arise from existing agreements or transactions.

Conclude that the type of receivable requiring creditworthiness evaluation is Loans Receivable and Notes Receivable, as these involve extending credit based on the individual's financial reliability.