Table of contents

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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

Banks and lenders use credit scores to determine which of the following?

The inventory valuation method to use

The amount of taxes owed by a business

The depreciation method for fixed assets

The creditworthiness of a borrower

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Verified step by step guidance

Understand the concept of credit scores: Credit scores are numerical representations of a borrower's creditworthiness, based on their financial history and behavior.

Recognize the purpose of credit scores: Banks and lenders use credit scores to assess the risk of lending money to a borrower and determine their ability to repay loans.

Eliminate unrelated options: Inventory valuation methods, tax calculations, and depreciation methods are accounting concepts unrelated to credit scores.

Focus on the correct application: Credit scores are specifically used to evaluate the creditworthiness of a borrower, which helps lenders decide whether to approve loans and set interest rates.

Conclude that the correct answer is: The creditworthiness of a borrower, as this aligns with the purpose of credit scores in financial decision-making.