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 types of accounts does NOT earn interest?

Checking account

Savings account

Certificate of deposit (CD)

Money market account

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Verified step by step guidance

Understand the concept of interest-earning accounts: Interest-earning accounts are financial accounts where the bank pays the account holder a percentage of the balance as interest over time. Common examples include savings accounts, certificates of deposit (CDs), and money market accounts.

Review the characteristics of each account type: Checking accounts are primarily used for daily transactions and typically do not earn interest. Savings accounts, CDs, and money market accounts are designed to grow money over time and usually earn interest.

Identify the purpose of a checking account: A checking account is designed for frequent access to funds, such as paying bills or making purchases. Because of its transactional nature, it generally does not offer interest on the balance.

Compare checking accounts to other account types: Savings accounts, CDs, and money market accounts are intended for saving money and often have restrictions on withdrawals or minimum balance requirements, which allow banks to pay interest on these accounts.

Conclude that checking accounts do not earn interest: Based on the analysis, checking accounts are the type of account listed that does not earn interest, unlike savings accounts, CDs, and money market accounts.