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

If you are looking to invest with a low-risk profile, which of the following investment options is generally considered the most appropriate?

Common Stocks

U.S. Treasury Bonds

Cryptocurrencies

Venture Capital Funds

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Understand the risk profile of each investment option: Common stocks are generally considered medium to high risk due to market volatility. Cryptocurrencies are highly volatile and speculative, making them high-risk investments. Venture capital funds are also high-risk as they invest in startups with uncertain outcomes. U.S. Treasury Bonds, on the other hand, are backed by the U.S. government and are considered low-risk investments.

Identify the key characteristic of a low-risk investment: Low-risk investments typically offer stable returns and have a lower chance of losing the principal amount. They are suitable for investors who prioritize capital preservation over high returns.

Evaluate U.S. Treasury Bonds: These bonds are issued by the U.S. government and are considered one of the safest investment options. They provide predictable interest payments and are less affected by market fluctuations.

Compare U.S. Treasury Bonds with the other options: Common stocks, cryptocurrencies, and venture capital funds all carry higher levels of risk due to market volatility, lack of regulation, or the speculative nature of the investments.

Conclude that U.S. Treasury Bonds are the most appropriate option for a low-risk investment profile, as they align with the characteristics of stability and safety.