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

In which type of receivable case is a bill never sent directly to the patient?

Trade receivable

Open account receivable

Notes receivable

Third-party payor case

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Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a business by its customers for goods or services provided. They are classified into different types, such as trade receivables, open account receivables, and notes receivables.

Learn about third-party payor cases: In these cases, the payment responsibility lies with a third party, such as an insurance company, rather than the individual receiving the service. This is common in industries like healthcare.

Compare the types of receivables: Trade receivables and open account receivables typically involve direct billing to the customer or patient. Notes receivables are formal agreements where the debtor promises to pay a specific amount at a future date.

Recognize the unique aspect of third-party payor cases: In these cases, the bill is sent directly to the third party (e.g., insurance company) rather than the patient, as the third party is responsible for payment.

Conclude that third-party payor cases differ from other receivable types because the patient does not receive the bill directly, aligning with the correct answer provided.