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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

What is the main reason you should start saving for retirement as early as possible?

Because investment returns are guaranteed to increase every year

So you can avoid paying any taxes on your investments

Because retirement accounts have no contribution limits

To take advantage of compound interest over a longer period

Previous problemNext problem

Verified step by step guidance

Understand the concept of compound interest: Compound interest is the process where the interest earned on an investment is reinvested, allowing the investment to grow exponentially over time. The earlier you start saving, the more time your money has to grow.

Recognize the importance of time in compounding: The longer the time horizon, the greater the impact of compound interest. Starting early allows you to maximize the growth potential of your investments.

Clarify misconceptions: Investment returns are not guaranteed to increase every year, and retirement accounts often have contribution limits. Additionally, taxes may apply depending on the type of account and withdrawal rules.

Focus on the correct reason: The main reason to start saving early is to take advantage of compound interest over a longer period, which can significantly increase the value of your retirement savings.

Apply this principle to financial planning: Incorporate regular contributions to retirement accounts early in your career to benefit from compounding and ensure a more secure financial future.