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

The variable return within a variable annuity is based on the performance of which of the following?

The insurance company's general account

The inflation rate as determined by the Consumer Price Index (CPI)

A fixed interest rate set by the insurance company

The underlying investment portfolio selected by the annuity holder

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Verified step by step guidance

Understand the concept of a variable annuity: A variable annuity is a type of investment product offered by insurance companies that allows the annuity holder to invest in a portfolio of underlying assets, such as mutual funds, and the returns are based on the performance of these investments.

Clarify the term 'variable return': In the context of a variable annuity, the variable return refers to the fluctuating earnings or losses that depend on the performance of the underlying investment portfolio chosen by the annuity holder.

Eliminate incorrect options: The insurance company's general account, inflation rate (CPI), and fixed interest rate are not relevant to the variable return of a variable annuity. These options pertain to other types of financial products or fixed annuities.

Focus on the correct option: The variable return is directly tied to the performance of the underlying investment portfolio selected by the annuity holder. This portfolio typically includes stocks, bonds, or mutual funds, and its value changes based on market conditions.

Conclude the explanation: The key takeaway is that the variable return within a variable annuity is not fixed or guaranteed but depends entirely on the investment choices made by the annuity holder and the market performance of those investments.