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

In the context of financial accounting, who assumes the investment risk with a fixed annuity contract?

The annuity contract holder

The federal government

The investment advisor

The insurance company

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Verified step by step guidance

Understand the concept of a fixed annuity contract: A fixed annuity is a financial product offered by insurance companies that provides guaranteed payments to the annuity holder, typically during retirement.

Identify the key feature of a fixed annuity: The insurance company guarantees a fixed rate of return and assumes the investment risk, regardless of market fluctuations.

Clarify the role of the annuity contract holder: The holder receives the guaranteed payments but does not bear the investment risk, as the insurance company manages the underlying investments.

Explain why the federal government and investment advisor are not involved: The federal government does not assume investment risk in private contracts, and the investment advisor may provide guidance but does not bear the risk.

Conclude that the insurance company assumes the investment risk: This is because they guarantee the fixed payments and are responsible for managing the investments to meet those obligations.