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

Interest Receivable

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Verified step by step guidance

Step 1: Understand the concept of receivables in financial accounting. Receivables are amounts owed to a company by customers or other parties, typically as a result of credit sales or other transactions. They are considered assets on the balance sheet.

Step 2: Review the types of receivables mentioned in the problem: Notes Receivable, Accounts Receivable, and Interest Receivable. Each of these represents a claim to cash or payment owed to the company.

Step 3: Clarify the term 'Inventory.' Inventory refers to goods or materials a company holds for sale or production, and it is classified as a current asset but not a receivable. It does not represent an amount owed to the company.

Step 4: Compare the definitions of receivables and inventory. Receivables are claims to cash, while inventory is a physical asset held for sale or production. This distinction helps identify which item is not a type of receivable.

Step 5: Conclude that 'Inventory' is not considered a type of receivable because it does not represent an amount owed to the company, unlike Notes Receivable, Accounts Receivable, and Interest Receivable.