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 classified as a type of receivable in financial accounting?

Accounts Payable

Prepaid Expenses

Inventory

Accounts Receivable

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Understand the concept of receivables: In financial accounting, receivables refer to amounts owed to a company by its customers or other parties. These are considered assets because they represent future cash inflows.

Analyze the options provided: Accounts Payable, Prepaid Expenses, and Inventory are not classified as receivables. Accounts Payable represents liabilities, Prepaid Expenses are assets but not receivables, and Inventory is a current asset related to goods held for sale.

Focus on Accounts Receivable: Accounts Receivable is the correct classification of receivables. It represents amounts owed to the company by customers for goods or services provided on credit.

Relate Accounts Receivable to the balance sheet: Accounts Receivable is reported as a current asset on the balance sheet, reflecting the company's expectation to collect these amounts within a year.

Conclude the classification: Based on the definitions and analysis, Accounts Receivable is the correct answer as it fits the definition of a type of receivable in financial accounting.