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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes a closed-end credit receivable in the context of purchasing a car?

A note receivable with no specified maturity date.

A loan with a fixed amount and repayment schedule, such as an auto loan.

An account receivable from a customer for goods sold on credit.

A credit card balance that can be borrowed and repaid repeatedly.

Previous problemNext problem

Verified step by step guidance

Understand the concept of closed-end credit: Closed-end credit refers to a loan where the borrower receives a fixed amount of money upfront and agrees to repay it over a specified period with a fixed repayment schedule.

Analyze the context of purchasing a car: Auto loans are typically structured as closed-end credit because they involve a fixed loan amount and a predetermined repayment schedule.

Evaluate the options provided: Compare each option to the definition of closed-end credit and its characteristics.

Option 1: 'A note receivable with no specified maturity date' does not match the definition of closed-end credit because it lacks a fixed repayment schedule.

Option 2: 'A loan with a fixed amount and repayment schedule, such as an auto loan' aligns with the definition of closed-end credit and is the correct answer.