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 an advantage of using an income-driven repayment plan for student loans?

There are no eligibility requirements for enrollment.

The total amount repaid is always less than the original loan balance.

Interest rates are automatically reduced to zero.

Monthly payments are based on your income, making them more affordable.

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Verified step by step guidance

Understand the concept of income-driven repayment plans: These plans are designed to make student loan payments more manageable by basing monthly payments on the borrower's income and family size, rather than the loan balance.

Clarify the eligibility requirements: Income-driven repayment plans typically have specific eligibility criteria, such as the type of loan and the borrower's income level. Therefore, the statement 'There are no eligibility requirements for enrollment' is incorrect.

Evaluate the repayment amount: While income-driven repayment plans can lower monthly payments, they do not guarantee that the total amount repaid will be less than the original loan balance. Interest may accrue over time, potentially increasing the total repayment amount.

Analyze interest rates: Income-driven repayment plans do not automatically reduce interest rates to zero. Interest continues to accrue on the loan, although some plans may offer interest subsidies under certain conditions.

Conclude the correct advantage: The primary benefit of income-driven repayment plans is that monthly payments are based on the borrower's income, making them more affordable and manageable, especially for those with lower earnings.