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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following types of investments has the greatest financial risk for the investor?

Government bonds

Common stocks

Certificates of deposit (CDs)

Savings accounts

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Verified step by step guidance

Understand the concept of financial risk: Financial risk refers to the possibility of losing money on an investment due to market fluctuations, company performance, or other factors.

Analyze each investment type: Government bonds are generally considered low-risk because they are backed by the government. Certificates of deposit (CDs) and savings accounts are also low-risk as they are insured and offer fixed returns.

Evaluate common stocks: Common stocks represent ownership in a company and are subject to market volatility, company performance, and economic conditions. This makes them riskier compared to the other options listed.

Compare risk levels: Common stocks have the greatest financial risk because their value can fluctuate significantly, and there is no guaranteed return. In contrast, government bonds, CDs, and savings accounts offer more stability and lower risk.

Conclude based on risk assessment: The correct answer is common stocks, as they carry the highest financial risk for the investor among the options provided.