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 type of securities represent part ownership or equity in a corporation?

Preferred stock

Corporate bonds

Commercial paper

Common stock

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Verified step by step guidance

Understand the key terms in the question: 'ownership' and 'equity.' These terms refer to a stake or share in a corporation, meaning the holder has a claim on the company's assets and earnings.

Review the characteristics of each option provided: Preferred stock, Corporate bonds, Commercial paper, and Common stock.

Preferred stock represents ownership in a corporation but typically does not come with voting rights. It has priority over common stock in terms of dividends and liquidation but is not the primary form of equity ownership.

Corporate bonds are debt instruments, not equity. They represent a loan made by an investor to the corporation, and bondholders are creditors, not owners.

Commercial paper is a short-term debt instrument used by corporations to finance operations. It does not represent ownership or equity. Common stock, on the other hand, represents part ownership or equity in a corporation, giving shareholders voting rights and a claim on profits through dividends.