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 an example of a balanced fund?

A bond fund that invests solely in government bonds

An equity fund that invests exclusively in common stocks

A money market fund that invests only in short-term debt securities

A mutual fund that invests in both stocks and bonds to provide a mix of growth and income

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Verified step by step guidance

Understand the concept of a balanced fund: A balanced fund is a type of mutual fund that invests in a mix of asset classes, typically stocks and bonds, to achieve both growth and income objectives. It aims to balance risk and return by diversifying investments.

Analyze the options provided: Review each option to determine whether it aligns with the definition of a balanced fund. A fund that invests solely in government bonds, common stocks, or short-term debt securities does not meet the criteria for a balanced fund.

Identify the correct option: A mutual fund that invests in both stocks and bonds fits the definition of a balanced fund because it provides a mix of growth (from stocks) and income (from bonds).

Relate the answer to the purpose of balanced funds: Balanced funds are designed for investors seeking moderate risk and a combination of capital appreciation and regular income.

Conclude the reasoning: The correct answer is the option that describes a mutual fund investing in both stocks and bonds, as it aligns with the characteristics of a balanced fund.