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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

All of the following are benefits to paying the full balance on your credit card each month except:

Increasing your available credit

Avoiding interest charges

Earning additional interest income on your credit card balance

Improving your credit score

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Verified step by step guidance

Understand the concept of credit card balances: Paying the full balance on your credit card each month helps you avoid interest charges and maintain a good credit score. However, it does not generate additional interest income, as credit cards are not interest-bearing accounts.

Analyze the benefits listed: Increasing available credit, avoiding interest charges, and improving your credit score are all valid benefits of paying the full balance on your credit card each month.

Evaluate the incorrect option: Earning additional interest income on your credit card balance is not a benefit because credit cards do not pay interest on balances; they charge interest on unpaid balances.

Clarify the reasoning: Paying off your credit card balance improves financial health by reducing debt and avoiding interest charges, but it does not create income or interest earnings.

Conclude the analysis: The correct answer is 'Earning additional interest income on your credit card balance,' as this is not a benefit associated with paying off your credit card balance.