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

Which of the following is a positive reason for using a credit card to finance purchases?

Accumulating high-interest debt over time

Building a credit history by making timely payments

Increasing the risk of overspending beyond your means

Paying more than the original purchase price due to interest charges

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Verified step by step guidance

Understand the concept of credit cards: Credit cards allow individuals to borrow money up to a certain limit to make purchases, with the expectation that the borrowed amount will be repaid, often with interest.

Identify the potential benefits of using a credit card: One positive reason for using a credit card is the ability to build a credit history, which is essential for obtaining loans, mortgages, or other financial products in the future.

Recognize the importance of timely payments: Making timely payments on a credit card demonstrates financial responsibility and positively impacts your credit score, which is a key factor in building a strong credit history.

Evaluate the drawbacks listed in the problem: Accumulating high-interest debt, overspending beyond your means, and paying more due to interest charges are negative consequences of improper credit card use, not positive reasons.

Conclude that the correct positive reason for using a credit card is building a credit history by making timely payments, as this supports long-term financial health and opportunities.