Multiple Choice
Which type of accounting is most commonly used by traditional banks to record day-to-day financial transactions?
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1. Introduction to Accounting
Types of Accounting
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When paying for higher education, money that you borrow and must pay back later comes from _____.
A
student loans
B
work-study programs
C
scholarships
D
grants
Verified step by step guidance1
Understand the concept of student loans: Student loans are funds borrowed from a lender, typically a government or private institution, to pay for educational expenses. These loans must be repaid with interest over time.
Differentiate between the options provided: Work-study programs involve earning money through part-time jobs while studying, scholarships are merit-based financial awards that do not require repayment, and grants are need-based financial aid that also does not require repayment.
Identify the key characteristic of the correct answer: The question specifies 'money that you borrow and must pay back later,' which aligns with the definition of student loans.
Eliminate incorrect options: Work-study programs, scholarships, and grants do not involve borrowing money that must be repaid later, so they are not the correct answer.
Conclude that the correct answer is student loans, as they meet the criteria of borrowing money and repaying it later.
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