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 statements regarding third-party ownership of a life insurance policy is true?

Only the insured can be the policyowner in third-party ownership.

The policyowner, the insured, and the beneficiary can all be different individuals.

The beneficiary must always be a financial institution.

Third-party ownership is not permitted under generally accepted accounting principles (GAAP).

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Verified step by step guidance

Step 1: Understand the concept of third-party ownership in life insurance policies. Third-party ownership occurs when the policyowner, the insured, and the beneficiary are different individuals or entities.

Step 2: Clarify the roles involved: The policyowner is the person or entity that owns the policy and pays the premiums. The insured is the individual whose life is covered by the policy. The beneficiary is the person or entity that receives the death benefit upon the insured's passing.

Step 3: Evaluate the statement 'Only the insured can be the policyowner in third-party ownership.' This is incorrect because third-party ownership explicitly allows the policyowner to be someone other than the insured.

Step 4: Analyze the statement 'The beneficiary must always be a financial institution.' This is incorrect because beneficiaries can be individuals, trusts, or entities, not necessarily financial institutions.

Step 5: Review the statement 'Third-party ownership is not permitted under generally accepted accounting principles (GAAP).' This is incorrect because GAAP does not prohibit third-party ownership of life insurance policies. The correct statement is: 'The policyowner, the insured, and the beneficiary can all be different individuals.'