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

What is the best reason for Jacinta to have a savings account in addition to a checking account?

A savings account typically earns higher interest than a checking account, helping Jacinta grow her money over time.

A savings account allows unlimited withdrawals and payments, just like a checking account.

A savings account is required to write checks for everyday purchases.

A savings account provides overdraft protection for all types of transactions.

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Verified step by step guidance

Understand the purpose of a savings account: A savings account is designed to help individuals save money and typically earns higher interest compared to a checking account. This makes it a good option for growing money over time.

Compare the features of a savings account and a checking account: Savings accounts generally have restrictions on the number of withdrawals or transactions, whereas checking accounts are designed for frequent transactions like paying bills or making purchases.

Evaluate the incorrect statements: A savings account does not allow unlimited withdrawals and payments like a checking account. It is also not required to write checks for everyday purchases, as that is the function of a checking account.

Clarify the role of overdraft protection: While some savings accounts may offer overdraft protection, this is not their primary purpose. Overdraft protection is typically associated with checking accounts.

Conclude the best reason for having a savings account: The primary advantage of a savings account is its ability to earn higher interest, helping individuals grow their money over time. This is the most compelling reason for Jacinta to have a savings account in addition to a checking account.