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

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

The initial amount of money you deposit or invest is called the:

Yield

Principal

Interest

Dividend

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Verified step by step guidance

Understand the concept of 'Principal': In financial accounting, the principal refers to the initial amount of money that is deposited or invested, before any interest, yield, or dividends are added.

Differentiate between the terms: Yield refers to the earnings generated on an investment, Interest is the cost of borrowing money or the earnings on savings, and Dividend is the distribution of profits by a corporation to its shareholders.

Identify the correct term: Since the question asks for the initial amount of money deposited or invested, the correct term is 'Principal'.

Review the options provided: Compare the definitions of Yield, Interest, Dividend, and Principal to ensure the correct term aligns with the concept of the initial deposit or investment.

Apply this understanding to similar problems: Use the definition of Principal to identify it in other contexts, such as loan agreements or investment scenarios.