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

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

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Multiple Choice

Newly issued securities are sold to investors in which one of the following markets?

Over-the-counter market

Secondary market

Primary market

Auction market

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Verified step by step guidance

Understand the concept of the primary market: The primary market is where newly issued securities are sold to investors for the first time. Companies use this market to raise capital by issuing stocks or bonds directly to investors.

Differentiate between the primary market and other markets: The secondary market is where previously issued securities are traded among investors. The over-the-counter market refers to decentralized trading of securities outside formal exchanges, and the auction market involves buyers and sellers bidding competitively for securities.

Recognize the role of the primary market: In the primary market, the transaction occurs directly between the issuer (e.g., a company) and the investor. This is distinct from the secondary market, where transactions occur between investors without involving the issuer.

Identify examples of primary market transactions: Examples include initial public offerings (IPOs) and private placements, where companies issue new shares or bonds to raise funds.

Apply this understanding to the question: Newly issued securities are sold in the primary market because it is the market designed for the initial sale of securities directly from the issuer to investors.