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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Struggling with Financial Accounting?

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Multiple Choice

Why does a company need a flow of money (cash inflow) into the business?

To avoid preparing financial statements.

To reduce the value of its assets on the balance sheet.

To finance operations, invest in assets, and meet financial obligations.

To increase the number of shareholders without any other purpose.

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Verified step by step guidance

Understand the concept of cash inflow: Cash inflow refers to the movement of money into a business from various sources such as sales revenue, investments, loans, or other financial activities. It is essential for maintaining the financial health of a company.

Recognize the importance of cash inflow: A company needs cash inflow to finance its day-to-day operations, such as paying employees, purchasing inventory, and covering other operating expenses.

Learn how cash inflow supports investment: Cash inflow allows a company to invest in assets like equipment, technology, or property, which are necessary for growth and long-term sustainability.

Understand the role of cash inflow in meeting financial obligations: Cash inflow is crucial for fulfilling financial commitments such as repaying loans, paying taxes, and distributing dividends to shareholders.

Avoid misconceptions: Cash inflow is not related to avoiding financial statement preparation, reducing asset values, or increasing shareholders without purpose. Its primary role is to ensure the company can operate effectively, grow, and meet its obligations.