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 investment is most likely to have more hidden costs compared to the others?

Certificates of deposit (CDs)

Index funds

U.S. Treasury bills

Actively managed mutual funds

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Understand the concept of hidden costs in investments. Hidden costs refer to fees or expenses that are not immediately apparent to the investor, such as management fees, transaction costs, or other administrative charges.

Analyze the characteristics of each investment type mentioned: Certificates of deposit (CDs), Index funds, U.S. Treasury bills, and Actively managed mutual funds.

Certificates of deposit (CDs) typically have minimal hidden costs, as they are straightforward fixed-income investments offered by banks with clear terms and interest rates.

Index funds are passively managed and aim to replicate the performance of a market index. They generally have lower fees compared to actively managed funds, making hidden costs less significant.

Actively managed mutual funds involve frequent buying and selling of securities by fund managers to outperform the market. This active management leads to higher management fees, transaction costs, and other administrative expenses, making them more likely to have hidden costs compared to the other investment types.