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

Why is it important for potential investors and customers to care about a business when considering investments in securities?

Because only customers, not investors, affect the business's financial statements.

Because investors and customers are required by law to invest in every new business.

Because caring about a business guarantees a positive return on investment.

Because their interest can influence the business's ability to raise capital and succeed in the market.

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Verified step by step guidance

Understand the role of potential investors and customers in a business's financial ecosystem. Investors provide capital, which is essential for business operations and growth, while customers generate revenue through purchases.

Recognize that the interest of investors and customers directly impacts the business's ability to raise capital. A business with strong investor confidence and customer loyalty is more likely to secure funding and succeed in the market.

Consider how financial statements reflect the health of a business. Investors analyze these statements to assess profitability, liquidity, and solvency, while customers may indirectly influence these metrics through their purchasing behavior.

Acknowledge that the success of a business is interconnected with its ability to attract and retain both investors and customers. Their interest and engagement are critical for sustaining operations and achieving long-term growth.

Understand that while caring about a business does not guarantee a positive return on investment, it does enhance the likelihood of the business thriving, which benefits both investors and customers in the long run.