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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Why might a lender choose to offer unsecured short-term loans instead of requiring collateral?

Collateral is never available for short-term loans.

Unsecured loans always have lower interest rates than secured loans.

The borrower has a strong credit history and established relationship with the lender.

Lenders are legally prohibited from requesting collateral for short-term loans.

Previous problemNext problem

Verified step by step guidance

Understand the concept of secured and unsecured loans: Secured loans require collateral, which is an asset pledged by the borrower to secure the loan. Unsecured loans do not require collateral and are based on the borrower's creditworthiness.

Analyze the reasons why a lender might offer unsecured loans: Lenders may choose to offer unsecured loans if the borrower has a strong credit history, demonstrating reliability in repaying debts.

Consider the relationship between the borrower and lender: An established relationship with the lender can build trust, making the lender more comfortable offering unsecured loans without collateral.

Evaluate the legal and practical aspects: While collateral is commonly used for secured loans, it is not legally prohibited for short-term loans. However, lenders may opt for unsecured loans for simplicity and efficiency in certain cases.

Conclude that the correct answer is based on the borrower's credit history and relationship with the lender, as these factors reduce the lender's perceived risk and make collateral unnecessary.