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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which one of the following is the best definition of a money market instrument?

A financial derivative used to hedge against currency risk.

A short-term debt security that is highly liquid and typically matures in one year or less.

A type of insurance contract that pays out upon the occurrence of a specific event.

A long-term equity security issued by corporations to raise capital.

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Verified step by step guidance

Understand the concept of a money market instrument: Money market instruments are short-term financial securities that are highly liquid and typically mature in one year or less. They are used for short-term borrowing and lending in financial markets.

Analyze the options provided in the question: Carefully read each option and determine whether it aligns with the definition of a money market instrument.

Eliminate incorrect options: For example, a financial derivative used to hedge against currency risk is not a money market instrument, as derivatives are used for risk management rather than short-term borrowing or lending.

Focus on the correct characteristics: A money market instrument is characterized by its short-term maturity, high liquidity, and use in financial markets for short-term funding. This aligns with the option describing 'A short-term debt security that is highly liquid and typically matures in one year or less.'

Confirm the correct answer: Based on the definition and characteristics, the correct answer is the option that matches the description of a money market instrument.