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

Which of the following best defines a credit score?

A record of all the transactions made by a business during the year.

A summary of a company's financial performance over a specific period.

A type of account used to record assets and liabilities.

A numerical representation of a person's creditworthiness based on their credit history.

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Verified step by step guidance

Step 1: Understand the concept of a credit score. A credit score is a numerical representation of an individual's creditworthiness, which is determined based on their credit history, including factors such as payment history, amounts owed, length of credit history, types of credit used, and new credit inquiries.

Step 2: Analyze the options provided in the question. Each option describes a different financial concept, but only one aligns with the definition of a credit score.

Step 3: Eliminate incorrect options. For example, 'A record of all the transactions made by a business during the year' refers to a transaction log, not a credit score. Similarly, 'A summary of a company's financial performance over a specific period' refers to financial statements, and 'A type of account used to record assets and liabilities' refers to ledger accounts.

Step 4: Identify the correct option. The correct definition of a credit score is 'A numerical representation of a person's creditworthiness based on their credit history.' This matches the description provided in the problem.

Step 5: Reinforce understanding by noting that credit scores are used by lenders to assess the risk of lending money to individuals and are a critical component of personal financial management.