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

Each of these statements describes a variable rate loan except:

Monthly payments can fluctuate as the interest rate changes.

Borrowers may pay more or less interest over time depending on market conditions.

The interest rate remains fixed for the entire term of the loan.

The interest rate may change periodically based on a benchmark index.

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Verified step by step guidance

Understand the concept of a variable rate loan: A variable rate loan is a type of loan where the interest rate can change periodically based on market conditions or a benchmark index.

Analyze the first statement: 'Monthly payments can fluctuate as the interest rate changes.' This is true for variable rate loans because changes in the interest rate directly affect monthly payments.

Evaluate the second statement: 'Borrowers may pay more or less interest over time depending on market conditions.' This is also true for variable rate loans, as the interest paid depends on the fluctuating interest rate.

Examine the third statement: 'The interest rate remains fixed for the entire term of the loan.' This is incorrect for variable rate loans, as the defining characteristic of such loans is that the interest rate changes periodically.

Review the fourth statement: 'The interest rate may change periodically based on a benchmark index.' This is correct for variable rate loans, as the interest rate is often tied to a benchmark index like LIBOR or the prime rate.