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

Which of the following is generally true of unsecured loans?

They typically have lower interest rates than secured loans.

They are only available to corporations, not individuals.

They require the borrower to pledge specific assets.

They are not backed by collateral.

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Verified step by step guidance

Understand the concept of unsecured loans: Unsecured loans are loans that do not require the borrower to pledge any specific assets as collateral. This means the lender relies on the borrower's creditworthiness to approve the loan.

Compare unsecured loans to secured loans: Secured loans require collateral, such as property or other assets, which the lender can claim if the borrower defaults. Unsecured loans, on the other hand, are riskier for lenders because they lack this security.

Analyze the interest rate difference: Since unsecured loans are riskier for lenders, they typically have higher interest rates compared to secured loans. This compensates the lender for the increased risk.

Evaluate availability to individuals and corporations: Unsecured loans are available to both individuals and corporations, provided they meet the lender's credit requirements. They are not restricted to corporations alone.

Confirm the correct statement: Based on the characteristics of unsecured loans, the correct answer is that they are not backed by collateral. This distinguishes them from secured loans.