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 is true regarding the premium in a 10-year level premium policy?

The premium amount remains constant throughout the 10-year period.

The premium is paid only at the beginning and end of the 10-year period.

The premium increases each year as the insured ages.

The premium decreases each year as the policy matures.

Previous problemNext problem

Verified step by step guidance

Understand the concept of a 'level premium policy': A level premium policy is a type of insurance policy where the premium amount remains fixed or constant throughout the term of the policy, regardless of changes in the insured's age or other factors.

Analyze the options provided: The first option states that the premium remains constant throughout the 10-year period, which aligns with the definition of a level premium policy. The other options suggest changes in the premium amount, which contradict the concept of a level premium policy.

Eliminate incorrect options: The second option suggests premiums are paid only at the beginning and end of the period, which is not typical for level premium policies. The third option states that premiums increase each year, and the fourth option states that premiums decrease each year—both of which are inconsistent with the 'level' nature of the premium.

Confirm the correct answer: Based on the definition and characteristics of a level premium policy, the correct answer is the first option, which states that the premium amount remains constant throughout the 10-year period.

Summarize the reasoning: A level premium policy ensures financial predictability for the insured by maintaining a fixed premium amount over the policy term, regardless of age or other factors.