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

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which of the following statements about savings accounts is FALSE?

Money in a savings account is usually insured by the FDIC up to a certain limit.

Savings accounts are generally used to store money that is not needed for daily expenses.

Savings accounts typically pay interest on the balance.

Withdrawals from a savings account can be made at any time without any restrictions or limits.

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Verified step by step guidance

Understand the purpose of savings accounts: Savings accounts are designed to store money that is not needed for daily expenses and typically pay interest on the balance. They are a safe place to keep funds while earning a small return.

Review the FDIC insurance: Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain limit, which protects depositors in case the bank fails.

Examine the interest feature: Savings accounts generally pay interest on the balance, which is a key feature that differentiates them from checking accounts.

Analyze withdrawal restrictions: While withdrawals can be made from savings accounts, there may be restrictions or limits, such as a maximum number of withdrawals per month or fees for excessive withdrawals. This is why the statement about unrestricted withdrawals is false.

Conclude the false statement: Based on the analysis, the false statement is 'Withdrawals from a savings account can be made at any time without any restrictions or limits,' as savings accounts often have withdrawal limitations.