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 statements about savings accounts is correct?

Savings accounts are only used for business transactions.

Savings accounts require you to pay interest to the bank.

Savings accounts do not pay any interest on the funds deposited.

Savings accounts pay interest on the funds deposited.

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Verified step by step guidance

Understand the purpose of savings accounts: Savings accounts are designed to help individuals save money while earning interest on the funds deposited. They are not limited to business transactions and are commonly used by individuals for personal savings.

Clarify the concept of interest: In a savings account, the bank pays interest to the account holder as a reward for keeping their money in the account. This is the opposite of loans, where the borrower pays interest to the bank.

Evaluate the incorrect statements: Savings accounts are not exclusively for business transactions, and they do not require the account holder to pay interest to the bank. Additionally, savings accounts typically pay interest, so the statement that they do not pay any interest is incorrect.

Identify the correct statement: The correct statement is that savings accounts pay interest on the funds deposited. This is a key feature of savings accounts and is one of the reasons people use them to grow their savings over time.

Summarize the key takeaway: Savings accounts are a financial tool that allows individuals to save money while earning interest on their deposits, making them a beneficial option for personal financial management.