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 a type of receivable in financial accounting?

Prepaid Expenses

Unearned Revenue

Inventory

Accounts Receivable

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Understand the concept of receivables: In financial accounting, receivables represent amounts owed to a company by customers or other parties, typically arising from credit sales or other transactions. They are classified as current assets on the balance sheet.

Analyze the options provided: Prepaid Expenses, Unearned Revenue, Inventory, and Accounts Receivable. Each term represents a different financial concept, and only one aligns with the definition of receivables.

Clarify why Prepaid Expenses are not receivables: Prepaid Expenses are payments made in advance for goods or services to be received in the future. They are considered assets but do not represent amounts owed to the company.

Clarify why Unearned Revenue is not receivables: Unearned Revenue refers to payments received by a company for goods or services it has yet to deliver. It is a liability, not an asset, and does not represent amounts owed to the company.

Clarify why Inventory is not receivables: Inventory consists of goods available for sale or production. It is a current asset but does not represent amounts owed to the company. Accounts Receivable, however, directly represents amounts owed to the company by customers, making it the correct answer.