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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

If an annuitant dies during the accumulation period of an annuity contract, what will the beneficiary typically receive?

Nothing, as the contract terminates upon the annuitant's death

A fixed monthly payment for the remainder of the original annuitant's life expectancy

The greater of the accumulated value or the total premiums paid, less any withdrawals

Only the accumulated investment earnings

Previous problemNext problem

Verified step by step guidance

Understand the concept of an annuity contract: An annuity is a financial product that provides regular payments to an individual, typically after retirement. The accumulation period refers to the phase during which the annuitant contributes funds to the annuity.

Identify the key terms in the problem: The annuitant is the person who owns the annuity contract, and the beneficiary is the person designated to receive benefits if the annuitant dies during the accumulation period.

Review the typical provisions of annuity contracts: Most annuity contracts include a death benefit clause, which ensures that the beneficiary receives a payout if the annuitant dies during the accumulation period.

Analyze the options provided: The correct answer states that the beneficiary will receive the greater of the accumulated value or the total premiums paid, less any withdrawals. This aligns with standard annuity contract provisions designed to protect the annuitant's contributions.

Conclude the reasoning: The death benefit ensures that the annuitant's contributions are not lost upon their death, providing financial security to the beneficiary. This is why the correct answer is the greater of the accumulated value or the total premiums paid, less any withdrawals.