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 best describes the set of rules or guidelines that govern how accounts receivable are recognized and reported in financial accounting?

Internal Revenue Code (IRC)

Generally Accepted Accounting Principles (GAAP)

Federal Reserve Regulations

International Monetary Fund (IMF) Standards

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Verified step by step guidance

Understand the concept of accounts receivable: Accounts receivable represent amounts owed to a company by its customers for goods or services provided on credit.

Recognize the importance of guidelines: In financial accounting, rules or guidelines are essential to ensure consistency, transparency, and comparability in reporting financial information.

Identify the governing body for accounting standards: Generally Accepted Accounting Principles (GAAP) are the set of rules and guidelines established by accounting standard-setting bodies, such as the Financial Accounting Standards Board (FASB), to govern financial reporting in the United States.

Eliminate incorrect options: Internal Revenue Code (IRC) governs tax-related matters, Federal Reserve Regulations pertain to banking and monetary policy, and International Monetary Fund (IMF) Standards focus on global financial stability, none of which directly govern accounts receivable recognition and reporting.

Conclude that GAAP is the correct answer: GAAP provides the framework for recognizing and reporting accounts receivable in financial accounting, ensuring compliance with standardized practices.