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 not a benefit of investing in securities?

Diversification of investment portfolio

Potential for capital appreciation

Guaranteed returns regardless of market conditions

Liquidity, allowing for easy buying and selling

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Verified step by step guidance

Understand the concept of investing in securities: Securities are financial instruments such as stocks, bonds, or mutual funds that investors purchase to earn returns. They offer various benefits, but not all benefits are guaranteed.

Review the benefits listed in the problem: Diversification of investment portfolio, potential for capital appreciation, and liquidity are all valid benefits of investing in securities.

Analyze the statement 'Guaranteed returns regardless of market conditions': This is not a benefit of investing in securities because returns are subject to market fluctuations and risks. No investment in securities can guarantee returns under all market conditions.

Compare the listed benefits with the concept of securities: Diversification helps reduce risk, capital appreciation allows for growth in value, and liquidity ensures ease of buying and selling. These align with the typical advantages of securities.

Conclude that 'Guaranteed returns regardless of market conditions' is not a benefit of investing in securities, as it contradicts the inherent risk associated with market-based investments.