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 type of account is similar to a savings account but typically offers higher interest rates, fixed terms, and a fixed interest rate?

Current Account

Checking Account

Money Market Account

Certificate of Deposit (CD)

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Verified step by step guidance

Understand the characteristics of a Certificate of Deposit (CD): A CD is a type of account that typically offers higher interest rates compared to savings accounts, but it requires the depositor to commit their funds for a fixed term.

Compare the features of a CD with other account types: Unlike a Current Account or Checking Account, which are designed for frequent transactions, a CD is not meant for regular withdrawals and has penalties for early withdrawal.

Recognize the fixed interest rate aspect: CDs provide a guaranteed interest rate for the duration of the term, which is different from Money Market Accounts that may have variable interest rates.

Identify the fixed term requirement: CDs require the depositor to lock in their funds for a specific period, such as 6 months, 1 year, or more, which is not a feature of other account types listed.

Conclude that the correct answer is Certificate of Deposit (CD) based on its unique features of higher interest rates, fixed terms, and fixed interest rates.