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 classified as a type of receivable in financial accounting?

Commercial Paper

Certificates of Deposit

Treasury Bills

Accounts Receivable

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Verified step by step guidance

Understand the concept of receivables: In financial accounting, receivables refer to amounts owed to a company by customers or other parties as a result of credit sales or other transactions. The most common type is 'Accounts Receivable,' which represents money owed by customers for goods or services provided on credit.

Analyze the options provided: Commercial Paper, Certificates of Deposit, and Treasury Bills are financial instruments, but they are not classified as receivables. These are typically considered investments or cash equivalents, not amounts owed by customers.

Focus on 'Accounts Receivable': This term specifically refers to the amounts owed by customers for credit sales. It is classified as a current asset on the balance sheet and is a key component of working capital management.

Differentiate receivables from other financial instruments: Receivables are claims for payment, while instruments like Commercial Paper, Certificates of Deposit, and Treasury Bills are investments or short-term debt instruments used for liquidity or earning interest.

Conclude the classification: Based on the explanation, 'Accounts Receivable' is the correct answer because it fits the definition of a receivable in financial accounting, unlike the other options provided.