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Which type of account typically requires money to be deposited for a fixed period, during which it cannot be withdrawn without penalty?

Traditional Savings Account

Checking Account

Certificate of Deposit (CD)

Money Market Account

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Verified step by step guidance

Understand the concept of a Certificate of Deposit (CD): A CD is a type of savings account offered by banks and financial institutions that requires the depositor to leave their money untouched for a fixed period, known as the term, in exchange for a higher interest rate compared to other accounts.

Compare the features of a CD with other account types: Traditional Savings Accounts, Checking Accounts, and Money Market Accounts typically allow more flexibility in accessing funds, whereas a CD imposes restrictions on withdrawals during the term period.

Recognize the penalty for early withdrawal: CDs often come with penalties if the depositor withdraws funds before the maturity date, which is a key distinguishing feature of this account type.

Identify the purpose of a CD: CDs are designed for individuals who want to earn higher interest on their savings and are willing to commit their funds for a specific duration without needing immediate access.

Conclude that the correct answer is Certificate of Deposit (CD), as it matches the description of an account requiring money to be deposited for a fixed period with withdrawal restrictions and penalties.