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 NOT considered a type of receivable in financial accounting?

Inventory

Accounts Receivable

Notes Receivable

Interest Receivable

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

Identify the types of receivables: Common types of receivables include Accounts Receivable (amounts owed by customers for goods or services sold on credit), Notes Receivable (formal written promises to pay a specific amount at a future date), and Interest Receivable (interest income earned but not yet received).

Analyze the given options: Review each option to determine whether it fits the definition of a receivable. Inventory, for example, represents goods held for sale and is classified as an asset, but it is not a receivable because it does not represent an amount owed to the company.

Compare Inventory to the other options: Accounts Receivable, Notes Receivable, and Interest Receivable all represent amounts owed to the company, while Inventory does not. This distinction makes Inventory the correct answer to the question.

Conclude the reasoning: Inventory is NOT considered a type of receivable because it does not involve amounts owed to the company. It is instead classified as a current asset related to goods available for sale.