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

Banks pay interest to customers through a:

Loan account

Accounts payable

Savings account

Credit card account

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Verified step by step guidance

Understand the concept of interest payments: Banks pay interest to customers as a way to incentivize saving money with them. This is typically done through accounts designed for saving, such as savings accounts.

Identify the purpose of each account type mentioned: Loan accounts are for borrowing money, accounts payable are liabilities for businesses, and credit card accounts are for short-term borrowing. None of these are designed to pay interest to customers.

Focus on the savings account: Savings accounts are specifically designed for customers to deposit money and earn interest over time. This aligns with the concept of banks paying interest.

Clarify why savings accounts are the correct answer: Banks use the money deposited in savings accounts to fund loans and other investments, and they pay interest to customers as a share of the earnings from these activities.

Conclude the reasoning: Savings accounts are the correct answer because they are the only type of account listed that is designed to pay interest to customers for their deposits.