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 of the following statements about the stock market is true?

Only government-owned companies can be listed on the stock market.

Stock prices remain constant throughout the trading day.

The stock market allows companies to raise capital by issuing shares to the public.

All stocks traded on the stock market guarantee a fixed annual return.

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Verified step by step guidance

Understand the purpose of the stock market: The stock market is a platform where companies can raise capital by issuing shares to the public. This allows businesses to fund their operations, expand, or invest in new projects.

Evaluate the first statement: 'Only government-owned companies can be listed on the stock market.' This is incorrect because private companies, not just government-owned ones, can also be listed on the stock market.

Evaluate the second statement: 'Stock prices remain constant throughout the trading day.' This is incorrect because stock prices fluctuate throughout the trading day based on supply and demand, company performance, and market sentiment.

Evaluate the third statement: 'The stock market allows companies to raise capital by issuing shares to the public.' This is correct because one of the primary functions of the stock market is to enable companies to raise funds by selling ownership stakes (shares) to investors.

Evaluate the fourth statement: 'All stocks traded on the stock market guarantee a fixed annual return.' This is incorrect because stock returns are not guaranteed and depend on market performance, company profitability, and other factors.