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

One of the main reasons we build wealth is so that we can:

Ensure all our money is kept in non-interest-bearing accounts

Avoid making any investments in securities

Increase our tax liability each year

Achieve long-term financial goals such as retirement or education funding

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Verified step by step guidance

Understand the purpose of building wealth: Building wealth is typically aimed at achieving financial security and meeting long-term financial goals, such as retirement, education funding, or other life aspirations.

Evaluate the incorrect options: Analyze why the other options are not aligned with the purpose of building wealth. For example, keeping money in non-interest-bearing accounts does not help grow wealth, avoiding investments limits potential growth, and increasing tax liability is not a financial goal.

Focus on the correct option: The correct answer highlights the importance of achieving long-term financial goals, which is the primary reason for wealth accumulation.

Relate to financial planning: Building wealth involves strategies like saving, investing, and managing expenses to ensure financial resources are available for future needs.

Conclude with the importance of goal-oriented wealth building: Emphasize that wealth building is a tool to achieve specific objectives, such as retirement or education funding, rather than an end in itself.