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 a type of receivable that represents amounts owed by customers for goods or services provided on credit?

Unearned Revenue

Notes Payable

Accounts Receivable

Prepaid Expenses

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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. They represent claims for payment for goods or services provided on credit.

Analyze the options provided: Unearned Revenue, Notes Payable, Accounts Receivable, and Prepaid Expenses. Each term has a specific meaning in financial accounting.

Define 'Accounts Receivable': Accounts Receivable refers to amounts owed by customers for goods or services provided on credit. It is recorded as an asset on the balance sheet because it represents future cash inflows.

Eliminate incorrect options: Unearned Revenue represents money received before goods or services are provided, Notes Payable refers to liabilities for borrowed funds, and Prepaid Expenses are payments made in advance for future expenses. None of these represent amounts owed by customers for goods or services provided on credit.

Conclude that the correct answer is 'Accounts Receivable' because it directly matches the definition of receivables owed by customers for goods or services provided on credit.