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

_____ are very safe and highly liquid assets that can be converted into cash quickly and easily.

Inventory

Cash equivalents

Notes receivable

Accounts receivable

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Verified step by step guidance

Understand the concept of 'cash equivalents': These are highly liquid assets that can be converted into cash quickly and easily, typically within three months or less. Examples include Treasury bills, money market funds, and commercial paper.

Review the other options provided: Inventory, Notes receivable, and Accounts receivable. These are not considered cash equivalents because they are either less liquid or involve longer conversion times.

Inventory refers to goods available for sale, which require a sales process to convert into cash, making it less liquid.

Notes receivable are written promises for amounts to be received in the future, often involving a longer time frame and not qualifying as cash equivalents.

Accounts receivable represent amounts owed by customers for credit sales, which require collection efforts and are not as liquid as cash equivalents.