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

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Multiple Choice

Which of the following are equity-indexed annuities typically invested in?

Only government bonds

A combination of fixed-income securities and equity market indexes

Direct ownership of individual stocks

Commodities such as gold and oil

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Verified step by step guidance

Understand the concept of equity-indexed annuities: These are financial products that combine features of fixed annuities and variable annuities. They provide a guaranteed minimum return while offering the potential for higher returns based on the performance of an equity market index.

Analyze the investment structure: Equity-indexed annuities typically invest in a combination of fixed-income securities (such as government or corporate bonds) to provide stability and a guaranteed return, and equity market indexes to offer growth potential.

Eliminate incorrect options: Direct ownership of individual stocks is not typical for equity-indexed annuities, as they track indexes rather than owning stocks directly. Similarly, commodities like gold and oil are not part of the investment structure for these annuities.

Focus on the correct answer: The correct investment structure for equity-indexed annuities is a combination of fixed-income securities and equity market indexes, as this aligns with their design to balance safety and growth.

Summarize the reasoning: Equity-indexed annuities are designed to provide a mix of stability and growth potential, achieved through investments in fixed-income securities and equity market indexes, rather than direct stock ownership or commodities.