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

Which of the following types of accounting policies typically has the least expensive first-year premium?

Term Life Insurance Policy

Endowment Policy

Universal Life Insurance Policy

Whole Life Insurance Policy

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Verified step by step guidance

Understand the concept of Term Life Insurance Policy: Term life insurance provides coverage for a specific period (term) and typically has the least expensive premiums in the first year because it does not include savings or investment components.

Compare Term Life Insurance Policy with other types: Endowment policies combine insurance with savings, making them more expensive. Universal life insurance offers flexible premiums and savings components, which increase costs. Whole life insurance provides lifelong coverage and builds cash value, leading to higher premiums.

Analyze the cost structure: Term life insurance premiums are based solely on the risk of insuring the individual for a specific term, without additional features like cash value accumulation or investment options.

Consider the purpose of each policy: Term life insurance is designed for temporary coverage needs, such as income replacement during working years, which contributes to its lower cost compared to other policies.

Conclude that Term Life Insurance Policy typically has the least expensive first-year premium due to its simplicity and lack of additional features like savings or investment components.