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

An asset promised as security until a loan is paid is called:

Equity

Depreciation

Revenue

Collateral

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Verified step by step guidance

Step 1: Understand the concept of collateral. Collateral refers to an asset that a borrower offers to a lender as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral to recover the loan amount.

Step 2: Review the options provided in the question. The options include Equity, Depreciation, Revenue, and Collateral. Each term has a distinct meaning in financial accounting.

Step 3: Clarify why the other options are incorrect: Equity refers to ownership interest in a company, Depreciation is the reduction in the value of an asset over time, and Revenue is the income generated from business operations. None of these terms relate to the concept of securing a loan.

Step 4: Identify that Collateral is the correct term because it directly matches the definition of an asset promised as security until a loan is paid.

Step 5: Conclude that the correct answer is Collateral, as it aligns with the concept described in the question.