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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

You can produce ____________ by buying and selling stocks, bonds, mutual funds, and real estate.

operating expenses

investment income

accounts payable

depreciation

Previous problemNext problem

Verified step by step guidance

Understand the concept of investment income: Investment income refers to earnings generated from investments such as stocks, bonds, mutual funds, and real estate. It is distinct from income earned through regular business operations or employment.

Identify the types of assets mentioned in the problem: Stocks, bonds, mutual funds, and real estate are all examples of investment assets that can generate income through dividends, interest, capital gains, or rental income.

Differentiate investment income from other financial terms: Operating expenses refer to costs incurred in running a business, accounts payable are liabilities owed to creditors, and depreciation is the reduction in the value of an asset over time. None of these terms are related to income generated from investments.

Recognize the correct answer: The term 'investment income' accurately describes the earnings produced by buying and selling stocks, bonds, mutual funds, and real estate.

Apply this understanding to similar scenarios: Whenever you encounter questions about income generated from financial assets or property, consider whether the term 'investment income' is appropriate based on the context provided.