Multiple Choice
When you use a bank, your money is:
16
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT considered to be a purpose of an annuity?
A
To accumulate savings over time with regular payments
B
To insure against the risk of outliving one's assets
C
To record business transactions in the general ledger
D
To provide a steady stream of income during retirement
Verified step by step guidance1
Step 1: Understand the concept of an annuity. An annuity is a financial product designed to provide a series of payments made at regular intervals, often used for retirement planning or savings accumulation.
Step 2: Review the purposes of an annuity. Common purposes include accumulating savings over time with regular payments, insuring against the risk of outliving one's assets, and providing a steady stream of income during retirement.
Step 3: Analyze the options provided in the question. Identify which options align with the typical purposes of an annuity and which do not.
Step 4: Recognize that recording business transactions in the general ledger is a financial accounting activity, not a purpose of an annuity. This option is unrelated to the concept of an annuity.
Step 5: Conclude that the correct answer is the option that does not align with the purposes of an annuity, which is 'To record business transactions in the general ledger.'
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations