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 factors influence the expected returns on investment projects?

Risk associated with the project

The historical cost of the asset

The number of employees in the company

The par value of company shares

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Verified step by step guidance

Understand the concept of expected returns: Expected returns on investment projects are the anticipated profits or gains from an investment, typically influenced by factors that affect the risk and potential profitability of the project.

Evaluate the risk associated with the project: Risk is a key determinant of expected returns. Higher risk typically demands higher expected returns to compensate investors for the uncertainty. Analyze how the project's risk profile impacts its expected returns.

Consider the historical cost of the asset: The historical cost of an asset refers to its original purchase price. While this is important for accounting purposes, it does not directly influence the expected returns on a project, as expected returns are forward-looking and based on future cash flows.

Assess the number of employees in the company: The number of employees is a measure of company size or operational scale but does not directly affect the expected returns of a specific investment project. It is not a relevant factor in this context.

Review the par value of company shares: The par value of shares is a nominal value assigned to stock and is unrelated to the expected returns of investment projects. It is primarily a legal or accounting concept and does not influence project profitability.