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

When it comes to investing, one of the most important things to remember is: never invest

more than you can afford to lose

in a diversified portfolio

in companies that pay dividends

in government bonds

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Verified step by step guidance

Understand the concept of risk tolerance: In financial accounting and investing, risk tolerance refers to the amount of risk an investor is willing and able to take on. This is influenced by factors such as income, expenses, financial goals, and personal circumstances.

Recognize the principle of affordability: The phrase 'never invest more than you can afford to lose' emphasizes the importance of ensuring that investments do not jeopardize your financial stability. This means only using discretionary funds for investing, not money needed for essential expenses.

Learn about diversification: A diversified portfolio spreads investments across various asset classes (e.g., stocks, bonds, real estate) to reduce risk. Diversification helps mitigate losses if one investment performs poorly.

Understand dividend-paying companies: Companies that pay dividends distribute a portion of their profits to shareholders. While these can provide steady income, they are not risk-free and should be considered as part of a broader investment strategy.

Explore government bonds: Government bonds are considered low-risk investments because they are backed by the government. However, they typically offer lower returns compared to riskier investments. They can be a good option for conservative investors or as part of a diversified portfolio.