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 primary benefit of having a cosigner when taking out a loan?

The loan is automatically forgiven if you miss a payment.

You do not need to provide any financial information to the lender.

You are not legally responsible for repaying the loan.

You may qualify for a lower interest rate due to the cosigner's stronger credit profile.

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Verified step by step guidance

Understand the role of a cosigner: A cosigner is someone who agrees to take responsibility for a loan if the primary borrower fails to repay it. This provides assurance to the lender that the loan will be repaid.

Analyze the benefits of having a cosigner: A cosigner with a stronger credit profile can reduce the lender's risk, potentially leading to better loan terms such as a lower interest rate.

Evaluate the incorrect options: The loan is not automatically forgiven if you miss a payment, financial information is still required, and the borrower remains legally responsible for repaying the loan.

Focus on the correct benefit: The cosigner's stronger credit profile can improve the borrower's chances of qualifying for a loan and securing a lower interest rate.

Conclude the reasoning: The primary benefit of having a cosigner is the potential to qualify for a lower interest rate due to the cosigner's stronger credit profile, which reduces the lender's perceived risk.