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 the context of types of receivables, taxes and withholdings most directly impact your:

net accounts receivable

inventory turnover

notes receivable

interest receivable

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Verified step by step guidance

Understand the concept of 'net accounts receivable': Net accounts receivable refers to the total amount of receivables a company expects to collect after accounting for allowances for doubtful accounts and other deductions, such as taxes and withholdings.

Recognize the impact of taxes and withholdings: Taxes and withholdings reduce the amount of receivables that a company can realistically expect to collect, which directly affects the net accounts receivable figure.

Differentiate between the options: Inventory turnover measures how efficiently inventory is sold, notes receivable refers to written promises for payment, and interest receivable pertains to interest earned but not yet received. None of these are directly impacted by taxes and withholdings.

Relate taxes and withholdings to net accounts receivable: Taxes and withholdings are adjustments that reduce the gross accounts receivable to arrive at the net accounts receivable, making this the correct answer.

Conclude that net accounts receivable is the most directly impacted by taxes and withholdings, as it reflects the realistic collectible amount after such deductions.