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

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is typically used by borrowers to secure a mortgage loan?

Real estate property

Unsecured promissory note

Automobile title

Personal savings account

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Understand the concept of a mortgage loan: A mortgage loan is a type of secured loan where the borrower pledges an asset as collateral to obtain financing. Typically, this asset is real estate property.

Review the options provided: Real estate property, unsecured promissory note, automobile title, and personal savings account.

Eliminate options that do not align with the concept of a secured loan: An unsecured promissory note is not backed by collateral, so it cannot be used to secure a mortgage loan. Similarly, a personal savings account is not typically pledged as collateral for a mortgage loan.

Consider the nature of the collateral: Automobile titles are used to secure auto loans, not mortgage loans. Real estate property is the most relevant collateral for a mortgage loan.

Conclude that the correct answer is real estate property, as it is the asset typically pledged by borrowers to secure a mortgage loan.