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 is the best example of a financial investment?

Building a house to live in

Purchasing shares of stock in a publicly traded company

Buying a new car for personal use

Acquiring office furniture for a business

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Verified step by step guidance

Understand the definition of a financial investment: A financial investment involves allocating money into assets or instruments with the expectation of generating a return or profit over time.

Analyze each option provided in the question to determine whether it qualifies as a financial investment based on the definition.

Option 1: 'Building a house to live in' - This is not a financial investment because it is primarily for personal use and does not directly aim to generate financial returns.

Option 3: 'Buying a new car for personal use' - This is also not a financial investment as it is for personal consumption and typically depreciates in value over time.

Option 4: 'Acquiring office furniture for a business' - While this is a business expense, it is not considered a financial investment as it does not directly generate financial returns. Option 2: 'Purchasing shares of stock in a publicly traded company' is the best example of a financial investment because it involves allocating money into an asset (stocks) with the expectation of earning dividends or capital gains.