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 must a lender disclose to consumers applying for a cash loan under the Truth in Lending Act?

The annual percentage rate (APR) and total finance charges

The lender's internal risk assessment policies

The lender's profit margin on the loan

The borrower's credit score

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Verified step by step guidance

Understand the Truth in Lending Act (TILA): The Truth in Lending Act is a federal law designed to promote informed use of consumer credit by requiring disclosures about terms and costs. It ensures transparency in lending practices.

Identify the key disclosure requirements under TILA: Lenders must disclose the annual percentage rate (APR), which represents the cost of credit as a yearly rate, and the total finance charges, which include all costs associated with the loan.

Eliminate irrelevant options: The lender's internal risk assessment policies, profit margin on the loan, and the borrower's credit score are not required disclosures under TILA. These are internal or unrelated factors that do not fall under the scope of the Act.

Focus on the correct disclosures: The APR and total finance charges are essential because they allow borrowers to compare loan offers and understand the true cost of borrowing.

Conclude the reasoning: Based on the requirements of TILA, the correct answer is that lenders must disclose the annual percentage rate (APR) and total finance charges to consumers applying for a cash loan.