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 terms best describes ETNs (Exchange-Traded Notes) and leveraged ETFs (Exchange-Traded Funds)?

Derivative securities

Municipal bonds

Fixed-income securities

Equity securities

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Understand the nature of ETNs (Exchange-Traded Notes): ETNs are unsecured debt securities issued by financial institutions. Their value is tied to the performance of an underlying index or asset, making them derivative securities.

Understand the nature of leveraged ETFs (Exchange-Traded Funds): Leveraged ETFs aim to amplify the returns of an underlying index or asset, often using derivatives such as futures contracts to achieve this leverage.

Review the definition of derivative securities: Derivative securities derive their value from an underlying asset, index, or financial instrument. Both ETNs and leveraged ETFs fit this definition because their value is linked to the performance of other financial instruments or indices.

Compare the other options: Municipal bonds are debt securities issued by local governments, fixed-income securities provide regular interest payments, and equity securities represent ownership in a company. None of these accurately describe ETNs or leveraged ETFs.

Conclude that the best term to describe ETNs and leveraged ETFs is 'Derivative securities,' as their value is derived from underlying assets or indices.