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 fund is generally considered the most attractive from a return perspective, assuming higher risk is acceptable?

Balanced funds

Bond funds

Money market funds

Equity funds

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Verified step by step guidance

Understand the types of investment funds listed in the problem: Balanced funds, Bond funds, Money market funds, and Equity funds.

Recognize that investment funds differ in their risk and return profiles. Higher risk is typically associated with higher potential returns.

Analyze the characteristics of each fund type: Balanced funds combine stocks and bonds for moderate risk and return; Bond funds focus on fixed-income securities with lower risk and return; Money market funds invest in short-term debt instruments with minimal risk and low return; Equity funds primarily invest in stocks, offering higher risk and potentially higher returns.

Identify that the problem specifies a preference for higher returns, assuming higher risk is acceptable. This aligns with the characteristics of Equity funds.

Conclude that Equity funds are generally considered the most attractive from a return perspective when higher risk is acceptable, as they aim to maximize returns through stock investments.