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 on a company's balance sheet?

Prepaid Expenses

Accounts Payable

Unearned Revenue

Accounts Receivable

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Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a company by customers or other parties, typically resulting from sales or services provided on credit. They are classified as assets on the balance sheet.

Analyze the options provided: Prepaid Expenses, Accounts Payable, Unearned Revenue, and Accounts Receivable. Determine which one fits the definition of receivables.

Clarify why Prepaid Expenses are not receivables: Prepaid Expenses represent payments made in advance for goods or services to be received in the future. They are classified as assets but are not receivables.

Clarify why Accounts Payable are not receivables: Accounts Payable represent amounts a company owes to suppliers for goods or services received. They are classified as liabilities, not receivables.

Clarify why Unearned Revenue is not a receivable: Unearned Revenue represents payments received by a company for goods or services it has yet to deliver. It is classified as a liability, not a receivable. Accounts Receivable, however, fits the definition of receivables as it represents amounts owed to the company by customers for credit sales.