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 statements is generally NOT true from an investor's perspective regarding investments in securities?

The market value of securities can fluctuate over time.

All investments in securities guarantee a fixed return.

Investments in equity securities may result in gains or losses.

Investors may receive dividends from certain types of securities.

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Verified step by step guidance

Step 1: Understand the context of the question. It is asking about statements that are generally NOT true from an investor's perspective regarding investments in securities. This means we need to identify the statement that does not align with typical investment realities.

Step 2: Analyze each statement provided in the question. For example: 'The market value of securities can fluctuate over time' is generally true because securities are subject to market conditions.

Step 3: Evaluate the statement 'Investments in equity securities may result in gains or losses.' This is also true because equity securities are tied to the performance of the issuing company and market conditions.

Step 4: Consider the statement 'Investors may receive dividends from certain types of securities.' This is true for securities like dividend-paying stocks or certain bonds.

Step 5: Examine the statement 'All investments in securities guarantee a fixed return.' This is generally NOT true because most securities, especially equity securities, do not guarantee fixed returns due to market risks and fluctuations.