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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is a desirable characteristic when choosing a line of credit?

High annual fees

Limited access to funds

Low interest rate

Strict repayment terms

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Understand the concept of a line of credit: A line of credit is a flexible loan from a financial institution that allows borrowers to access funds up to a predetermined limit. It is often used for short-term financing needs.

Identify desirable characteristics of a line of credit: Desirable characteristics typically include low interest rates, flexible repayment terms, and easy access to funds. These features make borrowing more affordable and convenient.

Evaluate the options provided in the problem: Analyze each characteristic mentioned (high annual fees, limited access to funds, low interest rate, strict repayment terms) to determine which aligns with the desirable traits of a line of credit.

Focus on the correct answer: Low interest rate is a desirable characteristic because it reduces the cost of borrowing, making the line of credit more financially advantageous for the borrower.

Conclude the reasoning: Characteristics such as high annual fees, limited access to funds, and strict repayment terms are undesirable because they increase costs or limit flexibility, which are contrary to the benefits of a good line of credit.