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

Which of the following is an advantage of using a checking account?

It restricts withdrawals to once per month.

It requires no record-keeping or monitoring of transactions.

It typically earns a higher interest rate than savings accounts.

It allows for easy access to funds for everyday transactions.

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Verified step by step guidance

Understand the purpose of a checking account: A checking account is designed to provide easy access to funds for everyday transactions, such as paying bills, making purchases, or withdrawing cash.

Evaluate the options provided in the question: Analyze each statement to determine whether it aligns with the primary function and benefits of a checking account.

Option 1: 'It restricts withdrawals to once per month.' This is incorrect because checking accounts typically allow unlimited withdrawals and transactions, making them convenient for daily use.

Option 2: 'It requires no record-keeping or monitoring of transactions.' This is incorrect because checking accounts require monitoring to ensure proper management of funds and avoid overdrafts.

Option 3: 'It typically earns a higher interest rate than savings accounts.' This is incorrect because checking accounts generally earn little to no interest compared to savings accounts. The correct answer is: 'It allows for easy access to funds for everyday transactions,' which aligns with the primary advantage of a checking account.