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 a true statement describing the benefits of an installment loan?

Installment loans require the full loan amount to be repaid in a single lump sum at the end of the term.

Installment loans allow borrowers to repay the loan in fixed, regular payments over a set period.

Installment loans typically have variable interest rates that change every month.

Installment loans do not require any interest payments.

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Verified step by step guidance

Step 1: Understand the concept of an installment loan. An installment loan is a type of loan where the borrower agrees to repay the loan amount in fixed, regular payments (installments) over a predetermined period. These payments typically include both principal and interest.

Step 2: Analyze the first statement: 'Installment loans require the full loan amount to be repaid in a single lump sum at the end of the term.' This is incorrect because installment loans are repaid in regular installments, not a single lump sum.

Step 3: Analyze the second statement: 'Installment loans allow borrowers to repay the loan in fixed, regular payments over a set period.' This is correct because it accurately describes the repayment structure of installment loans.

Step 4: Analyze the third statement: 'Installment loans typically have variable interest rates that change every month.' This is incorrect because installment loans often have fixed interest rates, providing predictable payment amounts.

Step 5: Analyze the fourth statement: 'Installment loans do not require any interest payments.' This is incorrect because installment loans include interest payments as part of the regular installments.