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

Enforcing referential integrity in the context of accounting information systems assures that:

interest is automatically calculated on all types of receivables

all receivables are immediately written off as bad debts

only cash sales are recorded in the receivables ledger

all receivable records are properly linked to valid customer accounts

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Verified step by step guidance

Understand the concept of referential integrity: In accounting information systems, referential integrity ensures that relationships between tables in a database are consistent. For example, every receivable record must be linked to a valid customer account in the system.

Identify the purpose of referential integrity: It prevents orphaned records, meaning that no receivable record exists without a corresponding customer account. This ensures data accuracy and reliability in financial reporting.

Analyze the options provided: Evaluate each statement to determine whether it aligns with the principle of referential integrity. For example, calculating interest on receivables or writing off bad debts are operational processes, not directly related to referential integrity.

Focus on the correct answer: The correct answer is that all receivable records are properly linked to valid customer accounts. This is the essence of referential integrity in accounting systems.

Apply this understanding to real-world scenarios: Consider how enforcing referential integrity helps maintain accurate financial records, supports audit trails, and ensures compliance with accounting standards.