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 of the following instruments are traded in a capital market?

Commercial paper

Bankers' acceptances

Corporate bonds

Treasury bills (with maturities less than one year)

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Verified step by step guidance

Understand the definition of a capital market: A capital market is a financial market where long-term securities, such as stocks and bonds, are traded. These instruments typically have maturities longer than one year.

Review the characteristics of each instrument mentioned in the problem: Commercial paper, Bankers' acceptances, Corporate bonds, and Treasury bills (with maturities less than one year).

Identify the maturity period of each instrument: Commercial paper and Treasury bills typically have short-term maturities (less than one year), which means they are traded in the money market, not the capital market.

Recognize that Corporate bonds are long-term debt instruments with maturities exceeding one year, making them suitable for trading in the capital market.

Conclude that instruments traded in the capital market are those with long-term maturities, such as Corporate bonds, while short-term instruments like Commercial paper, Bankers' acceptances, and Treasury bills are traded in the money market.