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

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

A term-loan agreement is a promissory note that requires the borrower to:

Repay the principal in a single lump sum at maturity with no interest

Pay only the interest at the end of the loan term

Make payments only when the lender requests them

Repay the principal and interest over a specified period of time

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Verified step by step guidance

Understand the concept of a term-loan agreement: A term-loan agreement is a financial arrangement where the borrower agrees to repay the loan over a specified period of time, typically including both principal and interest payments.

Clarify the repayment structure: Unlike other types of loans, a term-loan agreement generally requires periodic payments that cover both the principal and interest, rather than a single lump sum or irregular payments.

Eliminate incorrect options: Review the options provided in the problem and identify why they do not align with the definition of a term-loan agreement. For example, paying only interest at the end of the loan term or making payments only when requested by the lender are not standard practices for term loans.

Focus on the correct answer: The correct repayment structure for a term-loan agreement involves repaying both the principal and interest over a specified period of time, typically through regular installments.

Relate to real-world examples: Term-loan agreements are commonly used in business financing, where companies borrow funds for capital investments and repay the loan in structured installments over the agreed term.