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 of the following is true regarding the premium in term life insurance policies?

Premiums for term policies increase automatically each year regardless of the policy type.

Premiums for term policies accumulate cash value over time.

Premiums for term policies are paid only at the end of the policy term.

Premiums for term policies are generally lower than those for whole life policies.

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Verified step by step guidance

Understand the nature of term life insurance policies: Term life insurance provides coverage for a specific period (term) and does not accumulate cash value over time. It is designed to offer financial protection in case of the policyholder's death during the term.

Analyze the first statement: 'Premiums for term policies increase automatically each year regardless of the policy type.' This is not true for all term policies. Some term policies have level premiums, meaning the premium remains constant throughout the term.

Analyze the second statement: 'Premiums for term policies accumulate cash value over time.' This is incorrect because term life insurance does not have a savings or investment component; it only provides death benefit coverage.

Analyze the third statement: 'Premiums for term policies are paid only at the end of the policy term.' This is incorrect because premiums for term policies are typically paid periodically (e.g., monthly, quarterly, or annually) during the term, not at the end.

Evaluate the fourth statement: 'Premiums for term policies are generally lower than those for whole life policies.' This is correct because term life insurance is purely for coverage without a cash value component, making it more affordable compared to whole life insurance, which includes both coverage and a savings component.