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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is an external factor that can influence the interest rate on a loan?

The collateral provided by the borrower

Prevailing market interest rates set by the central bank

The loan amount requested by the borrower

The borrower's credit score

Previous problemNext problem

Verified step by step guidance

Understand the concept of external factors: External factors are those that are outside the control of the borrower and lender, such as economic conditions, government policies, or market trends.

Identify the options provided in the question: The options include collateral, prevailing market interest rates, loan amount, and credit score.

Analyze each option: Collateral, loan amount, and credit score are internal factors because they are specific to the borrower and the loan agreement. These are within the control of the borrower or lender.

Focus on the external factor: Prevailing market interest rates set by the central bank are determined by broader economic policies and market conditions, making them an external factor.

Conclude that the correct answer is the external factor, which is 'Prevailing market interest rates set by the central bank.' This is because it is influenced by macroeconomic policies and not by the borrower's individual circumstances.