Table of contents

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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 best describes equity funds in the context of investments in securities?

Funds that invest exclusively in government bonds.

Mutual funds that primarily invest in stocks of companies.

Funds that hold only cash and cash equivalents.

Mutual funds that invest solely in real estate properties.

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Understand the term 'equity funds' in the context of investments. Equity funds are mutual funds that primarily invest in stocks of companies, aiming for capital growth over time.

Analyze the options provided in the question. The first option mentions funds investing exclusively in government bonds, which are not equity funds but rather bond funds.

Evaluate the second option, which states that equity funds are mutual funds that primarily invest in stocks of companies. This aligns with the definition of equity funds.

Review the third option, which describes funds holding only cash and cash equivalents. These are typically money market funds, not equity funds.

Consider the fourth option, which mentions mutual funds investing solely in real estate properties. These are real estate investment trusts (REITs), not equity funds.