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

How is investing in U.S. Treasury bonds different from investing in corporate bonds?

Corporate bonds are issued by government agencies, while U.S. Treasury bonds are issued by private corporations.

Corporate bonds are exempt from federal income tax, while U.S. Treasury bonds are not.

U.S. Treasury bonds typically offer higher interest rates than corporate bonds of similar maturity.

U.S. Treasury bonds are backed by the federal government and generally have lower default risk compared to corporate bonds.

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Verified step by step guidance

Understand the nature of U.S. Treasury bonds: These are debt securities issued by the federal government to finance its operations. They are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.

Understand the nature of corporate bonds: These are debt securities issued by private corporations to raise capital. They typically carry a higher risk compared to U.S. Treasury bonds because their repayment depends on the financial health of the issuing corporation.

Compare default risk: U.S. Treasury bonds have lower default risk because they are backed by the federal government, which has a strong ability to meet its debt obligations. Corporate bonds, on the other hand, have a higher default risk as they depend on the corporation's ability to generate revenue and manage its debts.

Compare tax implications: U.S. Treasury bonds are subject to federal income tax but are exempt from state and local taxes. Corporate bonds, however, are subject to both federal and state/local taxes, which can affect the net return for investors.

Compare interest rates: Corporate bonds typically offer higher interest rates than U.S. Treasury bonds of similar maturity to compensate for their higher risk. Investors must weigh the trade-off between risk and return when choosing between these two types of bonds.