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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes a pure life annuity?

An annuity that guarantees payments for a fixed period, regardless of whether the annuitant is alive.

An annuity that pays a lump sum at the end of the contract term.

An annuity that pays periodic amounts to the annuitant for as long as they live, with no payments to beneficiaries after death.

An annuity that allows the annuitant to withdraw any amount at any time.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of a pure life annuity. A pure life annuity is a financial product that provides periodic payments to the annuitant for their lifetime. Payments cease upon the death of the annuitant, and no further payments are made to beneficiaries.

Step 2: Analyze the options provided in the problem. Each option describes a different type of annuity or payment structure. Compare these descriptions to the definition of a pure life annuity.

Step 3: Eliminate options that do not align with the definition of a pure life annuity. For example, an annuity that guarantees payments for a fixed period or allows lump-sum withdrawals does not match the characteristics of a pure life annuity.

Step 4: Identify the option that matches the definition of a pure life annuity. Look for the description that specifies periodic payments for the lifetime of the annuitant with no payments to beneficiaries after death.

Step 5: Confirm your understanding by reviewing the key features of a pure life annuity: lifetime payments, cessation of payments upon death, and no provision for beneficiaries.