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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following are the two most common types of receivables reported on a company's balance sheet?

Prepaid expenses and accrued revenues

Accounts receivable and notes receivable

Interest receivable and dividends receivable

Advances to employees and loans to officers

Previous problemNext problem

Verified step by step guidance

Understand the concept of receivables: Receivables are amounts owed to a company by its customers or other parties. They are classified as assets on the balance sheet because they represent future economic benefits.

Identify the two most common types of receivables: The most common types of receivables are 'Accounts Receivable' and 'Notes Receivable.' These are frequently reported on a company's balance sheet.

Define 'Accounts Receivable': Accounts receivable represent amounts owed by customers for goods or services provided on credit. They are typically short-term and expected to be collected within a year.

Define 'Notes Receivable': Notes receivable are formal written promises to pay a specific amount of money at a future date. They may include interest and can be short-term or long-term, depending on the payment terms.

Eliminate incorrect options: Prepaid expenses and accrued revenues are not receivables; they are other types of assets. Interest receivable and dividends receivable are less common. Advances to employees and loans to officers are specific and not as widely reported as accounts and notes receivable.