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 possible benefit of having a good credit history?

Increased audit risk by tax authorities

Decreased eligibility for credit cards

Higher tax liabilities

Lower interest rates on loans

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Verified step by step guidance

Understand the concept of credit history: Credit history is a record of a person's borrowing and repayment behavior. It includes information about loans, credit cards, and payment history, which lenders use to assess creditworthiness.

Recognize the benefits of a good credit history: A good credit history indicates responsible financial behavior, which can lead to benefits such as lower interest rates on loans, higher credit limits, and easier approval for financial products.

Analyze the options provided: Evaluate each option to determine if it aligns with the benefits of a good credit history. For example, increased audit risk by tax authorities and higher tax liabilities are unrelated to credit history, while decreased eligibility for credit cards contradicts the benefits of good credit history.

Focus on the correct benefit: Lower interest rates on loans are a direct result of a good credit history because lenders view individuals with strong credit as less risky, offering them favorable loan terms.

Conclude the reasoning: Based on the analysis, the correct answer is 'Lower interest rates on loans,' as it aligns with the advantages of maintaining a good credit history.