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

Unearned Revenue

Accounts Receivable

Accounts Payable

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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 each option: Prepaid Expenses are payments made in advance for goods or services to be received in the future, classified as assets but not receivables. Unearned Revenue represents money received before goods or services are delivered, classified as liabilities. Accounts Payable are amounts owed by the company to suppliers, classified as liabilities.

Focus on Accounts Receivable: Accounts Receivable represents amounts owed to the company by customers for goods or services provided on credit. It is classified as a type of receivable and recorded as an asset on the balance sheet.

Relate to the balance sheet classification: Receivables are part of current assets on the balance sheet, as they are expected to be converted into cash within a year. Accounts Receivable fits this classification.

Conclude the correct classification: Based on the analysis, Accounts Receivable is the correct answer as it is the only option classified as a type of receivable on the company's balance sheet.