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

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

In the context of financial accounting, what will the beneficiary typically receive if an annuitant dies before the annuity payments have been fully distributed?

Nothing; all rights to payments cease upon the annuitant's death

Only the initial investment amount, regardless of payments made

The remaining guaranteed payments or the present value of the remaining annuity, depending on the contract terms

A fixed lump sum equal to the total contract value at inception

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Verified step by step guidance

Step 1: Understand the concept of an annuity in financial accounting. An annuity is a financial product that provides periodic payments to an individual (the annuitant) over a specified period or for their lifetime.

Step 2: Recognize the role of the beneficiary in an annuity contract. The beneficiary is the person designated to receive benefits if the annuitant passes away before the annuity payments are fully distributed.

Step 3: Analyze the terms of the annuity contract. Contracts often specify what happens in the event of the annuitant's death, such as whether remaining payments or a lump sum will be provided to the beneficiary.

Step 4: Note that the beneficiary typically receives either the remaining guaranteed payments or the present value of the remaining annuity, depending on the specific terms of the contract. This ensures that the annuitant's investment is not lost upon their death.

Step 5: Exclude incorrect options by understanding that payments do not cease entirely upon the annuitant's death, nor is the beneficiary limited to receiving only the initial investment amount or a fixed lump sum equal to the total contract value at inception.