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 best describes a brokerage account?

A retirement account that provides tax advantages for long-term savings.

An account used exclusively for depositing paychecks and making everyday purchases.

An account that allows individuals to buy and sell securities such as stocks, bonds, and mutual funds through a licensed broker.

A savings account that earns a fixed interest rate and is insured by the government.

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Verified step by step guidance

Step 1: Understand the concept of a brokerage account. A brokerage account is a type of financial account that allows individuals to buy and sell securities such as stocks, bonds, mutual funds, and other investment products through a licensed broker.

Step 2: Compare the features of a brokerage account with other types of accounts mentioned in the options. For example, retirement accounts provide tax advantages for long-term savings, savings accounts earn fixed interest and are insured, and checking accounts are used for everyday transactions.

Step 3: Identify the unique characteristic of a brokerage account, which is its ability to facilitate investment transactions in securities.

Step 4: Eliminate the options that do not match the definition of a brokerage account. For instance, retirement accounts, savings accounts, and checking accounts serve different purposes and do not involve buying and selling securities.

Step 5: Confirm that the correct description of a brokerage account is: 'An account that allows individuals to buy and sell securities such as stocks, bonds, and mutual funds through a licensed broker.'