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

Notes Receivable

Financial Accounting

7. Receivables and Investments

Notes Receivable

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Multiple Choice

Which of the following is considered a certificate of indebtedness in financial accounting?

A purchase order

A delivery receipt

A promissory note

A sales invoice

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Understand the term 'certificate of indebtedness': In financial accounting, a certificate of indebtedness is a formal document that acknowledges a debt obligation. It is typically issued by a borrower to a lender and outlines the terms of repayment.

Review the options provided: A purchase order, a delivery receipt, a promissory note, and a sales invoice. Analyze each option to determine which fits the definition of a certificate of indebtedness.

Evaluate 'purchase order': A purchase order is a document issued by a buyer to a seller, indicating the items they wish to purchase. It does not represent a debt obligation but rather an intent to buy goods or services.

Evaluate 'delivery receipt': A delivery receipt is a document that confirms the delivery of goods or services. It does not acknowledge a debt obligation but serves as proof of delivery.

Evaluate 'promissory note': A promissory note is a written promise to pay a specified amount of money to a specific party at a future date. It is considered a certificate of indebtedness because it formally acknowledges a debt obligation.