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

Checkable deposits are the debts or liabilities of which of the following?

Banks

Federal Reserve

Customers

Government agencies

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Verified step by step guidance

Understand the concept of checkable deposits: Checkable deposits are funds deposited in bank accounts that can be accessed using checks, debit cards, or electronic transfers. These deposits are considered liabilities for the entity holding them because the entity owes the depositor the funds.

Identify the entity responsible for holding checkable deposits: Banks are the institutions where customers deposit their money into checkable accounts. These deposits are recorded as liabilities on the banks' balance sheets because the banks are obligated to return the funds to the customers upon request.

Clarify why other options are incorrect: The Federal Reserve does not hold checkable deposits directly; it oversees monetary policy and regulates banks. Customers are the depositors, not the entities responsible for holding the deposits. Government agencies may have accounts with banks but are not the entities holding checkable deposits.

Relate the concept to accounting principles: In financial accounting, liabilities represent obligations owed by an entity. Since checkable deposits are funds owed by banks to their customers, they are classified as liabilities for the banks.

Conclude the reasoning: Based on the explanation, checkable deposits are the debts or liabilities of banks, as they are responsible for holding and managing these funds for their customers.