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 an example of using unsecured credit?

Purchasing goods with a credit card

Obtaining a car loan secured by the vehicle

Financing equipment with a secured loan

Taking out a mortgage to buy a house

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Verified step by step guidance

Understand the concept of unsecured credit: Unsecured credit refers to borrowing that does not require collateral. Collateral is an asset pledged by the borrower to secure the loan, which the lender can seize if the borrower defaults.

Review the examples provided in the question: Analyze each option to determine whether it involves collateral or not.

Option 1: Purchasing goods with a credit card. Credit cards are typically unsecured because they do not require collateral to make purchases.

Option 2: Obtaining a car loan secured by the vehicle. This is a secured loan because the car serves as collateral for the loan.

Option 3: Financing equipment with a secured loan and Option 4: Taking out a mortgage to buy a house. Both involve collateral (equipment and house, respectively), making them secured loans.