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

In the context of types of receivables, deposits and withdrawals are also known as which of the following?

Trade Receivables

Accounts Payable

Notes Receivable

Advances

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Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a company by its customers or other parties. They are classified into different types based on their nature and purpose.

Learn about advances: Advances are payments made by customers or other parties before receiving goods or services. These are considered a type of receivable because the company owes the delivery of goods or services in exchange for the advance payment.

Differentiate advances from other types of receivables: Trade receivables arise from the sale of goods or services on credit, notes receivable are formal written promises to pay, and accounts payable are liabilities, not receivables. Advances are unique because they represent prepayments rather than credit sales.

Relate deposits and withdrawals to advances: Deposits and withdrawals often refer to transactions where funds are provided upfront (deposits) or taken back (withdrawals). In accounting, deposits made by customers are classified as advances because they are prepayments for future goods or services.

Conclude that deposits and withdrawals align with advances: Based on the explanation, deposits and withdrawals are categorized as advances in the context of types of receivables.