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 items is classified as a receivable on the balance sheet?

Accounts Receivable

Prepaid Insurance

Inventory

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 credit sales or other transactions. They are classified as current assets on the balance sheet.

Analyze each option provided: Review the definitions of Accounts Receivable, Prepaid Insurance, Inventory, and Accounts Payable to determine which fits the classification of a receivable.

Accounts Receivable: This represents amounts owed to the company by customers for goods or services provided on credit. It is classified as a receivable on the balance sheet.

Prepaid Insurance: This represents payments made in advance for insurance coverage. It is classified as a prepaid expense, not a receivable.

Inventory and Accounts Payable: Inventory is a current asset representing goods available for sale, while Accounts Payable is a liability representing amounts owed to suppliers. Neither is classified as a receivable.