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 settlement option pays a stated amount to an annuitant for a specified period or for life?

Lump-sum option

Annuity option

Installment refund option

Interest-only option

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Verified step by step guidance

Understand the concept of settlement options: Settlement options refer to the ways in which the proceeds from a financial instrument, such as an insurance policy or annuity, can be distributed to the beneficiary or annuitant.

Define the annuity option: The annuity option is a settlement method where a stated amount is paid periodically to the annuitant either for a specified period or for the remainder of their life.

Compare the annuity option with other options: For example, the lump-sum option pays the entire amount at once, the installment refund option provides periodic payments until the principal is refunded, and the interest-only option pays only the interest earned on the principal.

Identify the key feature of the annuity option: The defining characteristic of the annuity option is its ability to provide a steady stream of income over time, which can be tailored to last for a specific period or for the lifetime of the annuitant.

Conclude that the annuity option is the correct answer based on its description and purpose, as it aligns with the requirement of paying a stated amount for a specified period or for life.