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 type of receivable in financial accounting?

Prepaid Expenses

Accumulated Depreciation

Unearned Revenue

Accounts Receivable

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Verified step by step guidance

Understand the concept of receivables: In financial accounting, receivables represent amounts owed to a company by customers or other parties, typically arising from credit sales or other transactions.

Analyze the options provided: Prepaid Expenses, Accumulated Depreciation, Unearned Revenue, and Accounts Receivable. Determine which of these fits the definition of a receivable.

Evaluate Prepaid Expenses: These are payments made in advance for goods or services to be received in the future. They are classified as assets but are not considered receivables because they do not represent amounts owed to the company.

Evaluate Accumulated Depreciation: This is a contra-asset account that represents the total depreciation expense recorded against a fixed asset. It does not involve amounts owed to the company and is not a receivable.

Evaluate Unearned Revenue and Accounts Receivable: Unearned Revenue represents payments received in advance for goods or services yet to be delivered, which is a liability. Accounts Receivable, however, represents amounts owed to the company by customers for credit sales, making it the correct type of receivable.