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 appropriate investment objective for a mutual fund with a buy-and-hold approach?

Market timing to maximize returns

Short-term speculation

Frequent trading for quick profits

Long-term capital appreciation

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Verified step by step guidance

Understand the concept of a mutual fund with a buy-and-hold approach. This strategy involves purchasing investments and holding them for a long period, focusing on stability and growth over time rather than frequent trading.

Analyze the given options. Market timing, short-term speculation, and frequent trading are strategies that involve active management and quick decision-making, which are contrary to the buy-and-hold approach.

Recognize that the buy-and-hold strategy aligns with long-term investment goals, such as capital appreciation, which refers to the increase in the value of an investment over time.

Eliminate options that involve short-term or active trading strategies, as they do not align with the buy-and-hold philosophy.

Conclude that the appropriate investment objective for a mutual fund with a buy-and-hold approach is long-term capital appreciation, as it matches the strategy's focus on steady growth over time.