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

Which type of investment helps fund a business or a specific project, usually in exchange for some kind of stake in the company?

Money market fund

Certificate of deposit

Bond investment

Equity investment

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Verified step by step guidance

Understand the concept of equity investment: Equity investment involves providing capital to a business or project in exchange for ownership or a stake in the company. This can include shares of stock or other forms of equity.

Compare equity investment with other types of investments listed: Money market funds, certificates of deposit, and bond investments are typically debt-based or interest-bearing instruments, whereas equity investment represents ownership.

Recognize the purpose of equity investment: It is designed to fund businesses or projects, allowing investors to participate in the company's growth and profits, often through dividends or capital gains.

Identify the distinguishing feature of equity investment: Unlike debt instruments, equity investment does not guarantee fixed returns but offers potential for higher rewards tied to the company's performance.

Conclude that equity investment is the correct answer based on its characteristics and alignment with the question's description of funding a business or project in exchange for a stake in the company.