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 to be an IOU in accounting?

Notes Receivable

Inventory

Accounts Payable

Prepaid Expenses

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Understand the concept of an IOU in accounting: An IOU represents a formal acknowledgment of debt, indicating that one party owes money to another. It is typically documented in a written form and is associated with receivables or payables.

Analyze the options provided: Notes Receivable, Inventory, Accounts Payable, and Prepaid Expenses. Determine which of these represents a formal acknowledgment of debt.

Notes Receivable: This represents a written promise from a debtor to pay a specific amount at a future date. It is considered an IOU because it formalizes the obligation to repay.

Inventory: This refers to goods held for sale or production and does not represent a debt or obligation. Therefore, it is not an IOU.

Accounts Payable and Prepaid Expenses: Accounts Payable represents amounts owed by a company to suppliers, but it is not a formal IOU like Notes Receivable. Prepaid Expenses represent payments made in advance for future benefits and are not related to debt obligations.