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 generally considered the best way to achieve long-term financial goals?

Speculating in high-risk stocks for quick gains

Investing in a diversified portfolio of securities

Relying solely on lottery winnings

Keeping all funds in a checking account

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Verified step by step guidance

Understand the concept of long-term financial goals: These are objectives that require planning and consistent effort over an extended period, such as saving for retirement, buying a home, or funding education.

Evaluate the options provided in the question: Speculating in high-risk stocks, relying on lottery winnings, keeping funds in a checking account, and investing in a diversified portfolio of securities.

Analyze the risks and benefits of each option: High-risk stocks may lead to quick gains but are volatile and unpredictable. Lottery winnings are unreliable and not a sustainable strategy. Keeping funds in a checking account provides safety but does not generate significant returns due to low interest rates.

Understand the concept of diversification: Investing in a diversified portfolio of securities spreads risk across various assets, reducing the impact of poor performance in any single investment and increasing the likelihood of steady returns over time.

Conclude that investing in a diversified portfolio of securities is generally considered the best way to achieve long-term financial goals, as it balances risk and return effectively while promoting financial growth over time.