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 NOT considered to be a nonforfeiture option in accounting for life insurance policies?

Cash surrender value

Dividend option

Reduced paid-up insurance

Extended term insurance

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Verified step by step guidance

Step 1: Understand the concept of nonforfeiture options in life insurance policies. Nonforfeiture options are provisions that allow a policyholder to retain some benefits from a life insurance policy if they stop paying premiums. Common nonforfeiture options include cash surrender value, reduced paid-up insurance, and extended term insurance.

Step 2: Review the provided options and identify which ones are nonforfeiture options. Cash surrender value, reduced paid-up insurance, and extended term insurance are all standard nonforfeiture options in life insurance policies.

Step 3: Analyze the term 'Dividend option.' Dividends are typically associated with participating life insurance policies and represent a return of excess premiums. They are not considered a nonforfeiture option because they are not related to retaining benefits after premium payments stop.

Step 4: Compare the options and determine which one does not fit the definition of a nonforfeiture option. Dividend option is the correct answer because it is not a mechanism for retaining benefits when premiums are no longer paid.

Step 5: Conclude that the correct answer is 'Dividend option,' as it is not considered a nonforfeiture option in accounting for life insurance policies.