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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which document actually contains the borrower's promise to repay the loan?

Loan application

Promissory note

Title insurance policy

Mortgage deed

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Verified step by step guidance

Understand the context of the question: The problem is asking about the document that legally binds the borrower to repay the loan. This is a fundamental concept in financial agreements.

Clarify the options provided: The loan application is the initial form filled out by the borrower to request a loan, but it does not legally bind them to repayment. Title insurance policy protects against title defects but is unrelated to repayment. The mortgage deed secures the loan with collateral but does not directly promise repayment.

Focus on the correct document: The promissory note is the legal document where the borrower explicitly promises to repay the loan. It includes details such as the loan amount, repayment terms, interest rate, and due dates.

Explain the significance of the promissory note: It is a binding agreement and serves as evidence of the debt. If the borrower fails to repay, the lender can use the promissory note to enforce repayment through legal means.

Conclude by emphasizing the importance of understanding financial documents: Each document in a loan agreement serves a specific purpose, and the promissory note is central to the borrower's obligation to repay.