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 NOT a true statement about Automated Clearinghouses (ACHs) in the context of receivables?

ACHs help reduce the risk of handling physical cash and checks.

ACHs process electronic payments and collections between banks.

ACHs are commonly used for direct deposit of payroll and vendor payments.

ACH transactions are typically slower than paper checks.

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Verified step by step guidance

Understand the concept of Automated Clearinghouses (ACHs): ACHs are electronic networks used for financial transactions, such as direct deposits, bill payments, and collections between banks. They are designed to streamline and automate payment processes.

Review the benefits of ACHs: ACHs reduce the risk associated with handling physical cash and checks, improve efficiency, and are commonly used for payroll and vendor payments. They are faster and more secure compared to traditional paper checks.

Analyze the statement about ACH transaction speed: ACH transactions are typically faster than paper checks because they are processed electronically, reducing delays associated with physical handling and mailing.

Compare the given statements: Evaluate each statement to determine which one is inconsistent with the characteristics of ACHs. The statement 'ACH transactions are typically slower than paper checks' contradicts the known advantages of ACHs.

Conclude the analysis: Based on the comparison, identify the statement that is NOT true about ACHs. This involves recognizing that the incorrect statement is the one about ACH transactions being slower than paper checks.