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 of the following is a way that using credit could negatively impact Sanya's financial progress?

Building a positive credit history for future loans

Earning rewards points on purchases

Increasing her available cash flow through credit lines

Accumulating high-interest debt that becomes difficult to repay

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Verified step by step guidance

Understand the concept of credit: Credit allows individuals to borrow money or access goods and services with the promise to repay later. While it can be beneficial, it also carries risks, especially if not managed responsibly.

Identify the negative impact of credit: Accumulating high-interest debt is a common risk associated with credit. High-interest rates can lead to significant financial burdens if the debt is not repaid promptly.

Analyze the options provided: Evaluate each option to determine whether it represents a positive or negative impact on financial progress. For example, building a positive credit history and earning rewards points are generally beneficial, while accumulating high-interest debt is detrimental.

Focus on the correct answer: The correct answer highlights the negative impact of credit—'Accumulating high-interest debt that becomes difficult to repay.' This can hinder financial progress by reducing disposable income and increasing financial stress.

Conclude with a financial tip: To avoid the negative impact of credit, Sanya should aim to use credit responsibly by paying off balances in full each month, avoiding unnecessary debt, and understanding the terms of her credit agreements.