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 is NOT a positive reason for using a credit card to finance purchases?

Building a positive credit history when paid on time

Accumulating high-interest debt over time

Deferring payment to manage short-term cash flow

Earning rewards points or cash back on purchases

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Verified step by step guidance

Understand the concept of credit cards: Credit cards allow individuals to borrow money up to a certain limit to make purchases, with the expectation that the borrowed amount will be repaid, often with interest.

Identify positive reasons for using a credit card: Positive reasons include building a positive credit history when payments are made on time, deferring payment to manage short-term cash flow, and earning rewards points or cash back on purchases.

Analyze the negative aspect mentioned: Accumulating high-interest debt over time is a negative consequence of using a credit card irresponsibly, as unpaid balances accrue interest, leading to financial strain.

Compare the options provided: Evaluate each option to determine whether it aligns with the positive reasons for using a credit card or represents a negative consequence.

Conclude that the correct answer is the negative consequence: Accumulating high-interest debt over time is NOT a positive reason for using a credit card to finance purchases.