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

Brendan needs to summarize all unpaid customer balances for his company's financial records. Which type of receivable should he focus on?

Interest Receivable

Notes Receivable

Accounts Receivable

Dividends Receivable

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Verified step by step guidance

Understand the concept of Accounts Receivable: Accounts Receivable represents amounts owed by customers for goods or services provided on credit. These are unpaid balances that the company expects to collect in the future.

Differentiate between the types of receivables: Interest Receivable refers to interest earned but not yet received, Notes Receivable refers to formal written promises to pay, and Dividends Receivable refers to dividends declared but not yet received. None of these directly relate to unpaid customer balances for goods or services.

Identify the focus: Since Brendan is summarizing unpaid customer balances, he should focus on Accounts Receivable, as it specifically tracks amounts owed by customers for credit sales.

Review the company's financial records: Brendan should locate the Accounts Receivable ledger or subsidiary ledger, which contains detailed information about each customer's unpaid balances.

Summarize the balances: Add up all the individual unpaid balances from the Accounts Receivable ledger to create a total summary for the company's financial records.