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 is an element of a single premium annuity?

A lump-sum payment made at the beginning of the contract

Periodic premium payments over the life of the contract

Variable interest rates determined monthly

Guaranteed annual increases in premium amounts

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Verified step by step guidance

Understand the concept of a single premium annuity: A single premium annuity is a financial product where the purchaser makes a one-time lump-sum payment to the insurance company at the beginning of the contract. This payment is then used to provide periodic income payments, typically during retirement.

Analyze the options provided in the question: The options include a lump-sum payment made at the beginning of the contract, periodic premium payments over the life of the contract, variable interest rates determined monthly, and guaranteed annual increases in premium amounts.

Compare the options to the definition of a single premium annuity: Since a single premium annuity involves a one-time payment, periodic premium payments over the life of the contract and guaranteed annual increases in premium amounts do not align with this type of annuity.

Evaluate the remaining options: Variable interest rates determined monthly are not a defining characteristic of a single premium annuity. The correct element is the lump-sum payment made at the beginning of the contract, as this is the key feature of a single premium annuity.

Conclude that the correct answer is the lump-sum payment made at the beginning of the contract, as it matches the defining characteristic of a single premium annuity.