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 is a primary reason why the bond market is considered larger than the stock market?

Stocks are rarely traded compared to bonds.

Bonds are always riskier than stocks, attracting more investors.

The bond market only includes government securities, making it more exclusive.

Governments and corporations frequently issue bonds to raise large amounts of capital.

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Verified step by step guidance

Understand the context of the bond market: Bonds are debt instruments issued by governments and corporations to raise capital, while stocks represent ownership in a company.

Recognize the frequency of bond issuance: Governments and corporations often issue bonds to finance projects, operations, or manage debt, which contributes to the bond market's size.

Compare the trading activity: While stocks are actively traded, bonds are issued in larger quantities and often held by investors for longer periods, contributing to the perception of a larger market.

Consider the diversity of the bond market: The bond market includes various types of bonds, such as government securities, corporate bonds, municipal bonds, and more, which adds to its size and complexity.

Conclude that the primary reason the bond market is larger is due to the frequent issuance of bonds by governments and corporations to raise substantial amounts of capital.