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 best explains how investing in securities can increase your value to a company?

By understanding and managing investments, you can help the company make informed financial decisions that may increase returns.

Investing in securities is only relevant for personal finance, not for company operations.

Investing in securities guarantees that the company will never experience financial losses.

Investing in securities eliminates the need for any other financial management skills.

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Verified step by step guidance

Understand the context of the question: The focus is on how knowledge of investing in securities can add value to a company. This involves understanding the role of investments in corporate financial management.

Clarify the concept of investing in securities: Investing in securities involves purchasing financial instruments like stocks, bonds, or mutual funds to generate returns. For a company, this can be part of managing excess cash or achieving strategic financial goals.

Evaluate the options provided: Analyze each statement to determine its validity. For example, consider whether investing in securities is relevant only for personal finance or if it can also benefit company operations.

Identify the correct reasoning: The correct answer should highlight how understanding and managing investments can help a company make informed financial decisions, potentially increasing returns and overall value.

Conclude by eliminating incorrect options: For instance, statements suggesting that investing in securities guarantees no financial losses or eliminates the need for other financial skills are incorrect, as they oversimplify the complexities of financial management.