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 financing option commonly associated with receivables?

Depreciation

Securitization

Pledging

Factoring

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Understand the concept of receivables financing: Receivables financing refers to methods businesses use to obtain cash by leveraging their accounts receivable. Common options include securitization, pledging, and factoring.

Define each financing option: Securitization involves bundling receivables into securities and selling them to investors. Pledging involves using receivables as collateral for a loan. Factoring involves selling receivables to a third party at a discount for immediate cash.

Identify the term 'Depreciation': Depreciation is an accounting concept used to allocate the cost of tangible assets over their useful life. It is not related to financing receivables.

Compare the options: Depreciation does not involve receivables or financing, whereas securitization, pledging, and factoring are directly associated with receivables financing.

Conclude that 'Depreciation' is NOT a financing option commonly associated with receivables, as it pertains to asset cost allocation rather than cash flow or financing methods.