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

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which of the following is typically included in the finance charge for a loan?

Interest charged on the loan balance

Dividends paid to shareholders

Principal amount of the loan

Repayment of the original loan amount

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Verified step by step guidance

Understand the concept of a finance charge: A finance charge is the total cost of borrowing money, which typically includes interest and any fees associated with the loan.

Analyze the options provided: Interest charged on the loan balance, dividends paid to shareholders, principal amount of the loan, and repayment of the original loan amount.

Eliminate irrelevant options: Dividends paid to shareholders are not related to borrowing costs, as they represent a return to equity holders. Similarly, the principal amount and repayment of the original loan amount are not considered finance charges; they are the borrowed amount itself.

Focus on the correct option: Interest charged on the loan balance is the cost of borrowing and is typically included in the finance charge.

Conclude that the finance charge for a loan primarily includes the interest charged on the loan balance, as this represents the cost incurred by the borrower for using the lender's money.