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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

The interest rate that helps determine the interest rates charged on other loans is called the:

Coupon rate

Prime rate

Discount rate

Effective annual rate

Previous problemNext problem

Verified step by step guidance

Understand the concept of the 'Prime rate': It is the interest rate that commercial banks charge their most creditworthy customers, typically large corporations. This rate serves as a benchmark for determining interest rates on other loans.

Differentiate between the given options: The 'Coupon rate' refers to the annual interest rate paid on a bond's face value, the 'Discount rate' is the interest rate charged by central banks on loans to commercial banks, and the 'Effective annual rate' accounts for compounding within a year.

Recognize that the 'Prime rate' is widely used as a reference point for setting interest rates on various types of loans, including personal loans, mortgages, and credit cards.

Note that the 'Prime rate' is influenced by the federal funds rate, which is set by the Federal Reserve in the United States, and it fluctuates based on economic conditions.

Conclude that the correct answer is 'Prime rate' because it directly impacts the interest rates charged on other loans, serving as a foundational benchmark.