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

How does paying off the full credit card balance each month help a user avoid finance charges?

By increasing the credit limit automatically

By reducing the minimum payment required

By improving the card's reward rate

By eliminating the outstanding balance before interest is applied

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Verified step by step guidance

Understand the concept of finance charges: Finance charges are the interest fees applied to the outstanding balance on a credit card if the balance is not paid in full by the due date.

Recognize the relationship between paying off the full balance and avoiding finance charges: When the full balance is paid off each month, there is no remaining balance for interest to be calculated on, effectively eliminating finance charges.

Clarify why paying off the balance does not affect other factors: Paying off the balance does not automatically increase the credit limit, reduce the minimum payment required, or improve the card's reward rate. These are unrelated to the avoidance of finance charges.

Understand the timing of payments: Paying off the balance before the due date ensures that the credit card issuer does not apply interest to the outstanding balance.

Conclude the benefit: By eliminating the outstanding balance before interest is applied, the user avoids finance charges, saving money and maintaining financial health.