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

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Which of the following is a disadvantage of credit cards?

They guarantee that all transactions are error-free.

They can lead to increased risk of fraud if not properly monitored.

They always require immediate payment in cash.

They eliminate the need for any internal controls.

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Verified step by step guidance

Understand the context of the question: The problem is asking about disadvantages of credit cards, which are financial tools used for transactions and payments.

Analyze each option provided: Evaluate whether each statement accurately describes a disadvantage of credit cards.

Option 1: 'They guarantee that all transactions are error-free.' This is incorrect because credit cards do not guarantee error-free transactions; errors can occur due to technical issues or human mistakes.

Option 3: 'They always require immediate payment in cash.' This is incorrect because credit cards allow deferred payment, not immediate cash payment.

Option 4: 'They eliminate the need for any internal controls.' This is incorrect because internal controls are still necessary to monitor and manage credit card usage effectively. The correct answer is Option 2: 'They can lead to increased risk of fraud if not properly monitored,' as credit cards are susceptible to fraud if not carefully managed.