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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following are sources of cash to an investor from owning stock?

Amortization and inventory sales

Interest payments and tax refunds

Dividends received and proceeds from selling the stock

Loan repayments and depreciation expense

Previous problemNext problem

Verified step by step guidance

Understand the concept of cash sources for an investor owning stock. Investors typically receive cash through two primary methods: dividends and proceeds from selling the stock.

Dividends are payments made by a corporation to its shareholders, usually derived from the company's profits. These are a direct source of cash for stockholders.

Proceeds from selling the stock refer to the cash received when an investor sells their shares in the market. This is another direct source of cash for the investor.

Eliminate incorrect options by analyzing their relevance to stock ownership. For example, amortization, inventory sales, interest payments, tax refunds, loan repayments, and depreciation expense are not directly related to owning stock as they pertain to other financial activities.

Conclude that the correct sources of cash for an investor owning stock are dividends received and proceeds from selling the stock, as these are directly tied to stock ownership.