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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

A ______ is a fixed income investment that represents a loan from an investor to a borrower.

stock

bond

equity

dividend

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Verified step by step guidance

Understand the concept of fixed income investments: Fixed income investments are financial instruments that provide regular interest payments to the investor and return the principal amount at maturity.

Identify the key characteristics of a bond: A bond is a type of fixed income investment where an investor lends money to a borrower (typically a corporation or government) in exchange for periodic interest payments and the repayment of the principal at maturity.

Differentiate between the terms provided: Stock represents ownership in a company, equity refers to ownership interest in assets after liabilities are deducted, and dividend is a distribution of profits to shareholders. None of these terms describe a fixed income investment.

Recognize that the correct term for a fixed income investment representing a loan is 'bond': Bonds are specifically designed to function as loans from investors to borrowers.

Apply this understanding to the problem: The blank in the sentence should be filled with 'bond' because it accurately describes a fixed income investment that represents a loan from an investor to a borrower.