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 typically classified as a receivable that is expected to be converted into cash within one year?

Goodwill

Land

Equipment

Accounts Receivable

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Verified step by step guidance

Understand the concept of 'receivables': Receivables are amounts owed to a company by its customers or other parties, typically arising from credit sales or other transactions. They are classified as current assets if they are expected to be converted into cash within one year.

Review the classification of the given options: Goodwill, Land, and Equipment are not receivables. Goodwill is an intangible asset, Land is a long-term tangible asset, and Equipment is also a long-term tangible asset. None of these are expected to be converted into cash within one year.

Focus on 'Accounts Receivable': Accounts Receivable represents amounts owed to the company by customers for goods or services provided on credit. It is typically classified as a current asset because it is expected to be collected within one year.

Understand why Accounts Receivable is the correct answer: Among the options provided, only Accounts Receivable meets the criteria of being a receivable that is expected to be converted into cash within one year.

Conclude the classification: Accounts Receivable is classified as a current asset on the balance sheet, reflecting its short-term nature and expected conversion into cash within the operating cycle.