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 considered a vendor's transaction in the context of types of receivables?

Accounts receivable from customers for goods sold on credit

Notes receivable issued to suppliers for inventory purchases

Advances to employees

Interest receivable from investments

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Verified step by step guidance

Understand the context of the problem: The question is asking about a vendor's transaction in the context of types of receivables. A vendor's transaction typically involves the exchange of goods or services with suppliers or customers.

Review the options provided: The options include accounts receivable from customers, notes receivable issued to suppliers, advances to employees, and interest receivable from investments. Each option represents a different type of receivable.

Clarify the concept of 'vendor's transaction': A vendor's transaction specifically refers to dealings with suppliers or vendors, such as purchasing inventory or services. This is distinct from transactions with customers, employees, or investments.

Analyze the options: Accounts receivable from customers relates to credit sales, which is a customer transaction. Advances to employees are internal transactions, not vendor-related. Interest receivable from investments pertains to financial income, not vendor dealings. Notes receivable issued to suppliers for inventory purchases directly involves a vendor transaction, as it represents a formal agreement to pay suppliers for inventory.

Conclude the reasoning: Based on the analysis, the correct answer is 'Notes receivable issued to suppliers for inventory purchases,' as it aligns with the definition of a vendor's transaction in the context of receivables.