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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following payment options results in funds being withdrawn from your bank account immediately?

Accounts receivable

Debit card transaction

Post-dated check

Credit card transaction

Previous problemNext problem

Verified step by step guidance

Understand the concept of each payment option: Accounts receivable refers to money owed to a company by its customers, and it does not involve immediate withdrawal from your bank account. A post-dated check is a check written with a future date, meaning funds are not withdrawn until the specified date. A credit card transaction involves borrowing money from the credit card issuer, and the funds are not immediately withdrawn from your bank account.

Focus on the debit card transaction: A debit card transaction directly withdraws funds from your bank account at the time of purchase or payment. This is because a debit card is linked to your bank account, and the transaction is processed immediately.

Compare the options: Among the given options, only the debit card transaction results in immediate withdrawal of funds from your bank account. The other options either involve delayed withdrawal or no withdrawal at all.

Review the reasoning: Ensure you understand why the debit card transaction is the correct answer. It is due to the direct link between the debit card and your bank account, which facilitates immediate fund transfer.

Apply this knowledge: Use this understanding to analyze similar scenarios in financial accounting, where timing of fund withdrawal is critical for decision-making and record-keeping.