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 NOT considered a risk associated with a variable annuity contract?

Inflation risk

Market risk

Credit risk of the annuitant

Interest rate risk

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Understand the concept of a variable annuity contract: A variable annuity is a type of investment product that provides periodic payments to the holder, with the value of payments depending on the performance of underlying investments, such as mutual funds.

Identify the risks typically associated with variable annuity contracts: These include market risk (due to fluctuations in investment performance), inflation risk (the purchasing power of payments may decrease over time), and interest rate risk (changes in interest rates can affect the value of fixed-income investments within the annuity).

Clarify the term 'credit risk of the annuitant': Credit risk generally refers to the risk that a borrower or counterparty will default on their obligations. In the context of a variable annuity, the annuitant (the person receiving payments) does not pose credit risk because the annuity provider is the entity responsible for making payments, not the annuitant.

Compare the listed risks to determine which one is NOT applicable: Since the annuitant does not pose credit risk, this is not a risk associated with variable annuity contracts. The other risks (inflation, market, and interest rate risks) are inherent to the nature of variable annuities.

Conclude that 'credit risk of the annuitant' is the correct answer because it is not relevant to the risks associated with variable annuity contracts.