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 best completes the sentence: 'A bank can help you _ your money and keep it _' in the context of types of receivables?

invest; risky

collect; secure

spend; available

borrow; limited

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Verified step by step guidance

Understand the context of the question: It is asking about the role of a bank in managing money, specifically in the context of types of receivables. Receivables refer to amounts owed to a company or individual, typically from customers or borrowers.

Analyze the options provided: Each option suggests a different function of a bank. For example, 'invest; risky' implies investment services, 'collect; secure' implies safeguarding and managing receivables, 'spend; available' implies liquidity management, and 'borrow; limited' implies lending services.

Focus on the phrase 'types of receivables': This indicates the correct answer should relate to the management and security of receivables, which are amounts owed to an entity.

Evaluate the correct answer: 'Collect; secure' aligns with the role of a bank in helping individuals or businesses collect receivables and ensure their security, which is a fundamental banking service.

Conclude the reasoning: The other options do not directly relate to the management of receivables. For example, 'invest; risky' focuses on investments, which are not directly tied to receivables, and 'spend; available' and 'borrow; limited' focus on liquidity and lending, respectively, which are also unrelated to receivables.