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 an element of a single premium annuity?

Interest credited only at maturity

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

Guaranteed return of principal only if the annuitant survives the term

Periodic premium payments over several years

Previous problemNext problem

Verified step by step guidance

Understand the concept of a single premium annuity: A single premium annuity is a financial product where the buyer makes a one-time lump-sum payment at the beginning of the contract. This payment is used to generate periodic income or returns over a specified period.

Analyze the options provided: Evaluate each option to determine which aligns with the definition and characteristics of a single premium annuity.

Option 1: 'Interest credited only at maturity' - This does not align with the concept of a single premium annuity, as interest is typically credited periodically or continuously during the term.

Option 3: 'Guaranteed return of principal only if the annuitant survives the term' - This describes a conditional payout structure, which is not a defining feature of single premium annuities.

Option 4: 'Periodic premium payments over several years' - This contradicts the 'single premium' aspect, as single premium annuities involve a one-time lump-sum payment. Therefore, the correct answer is 'A lump-sum payment made at the beginning of the contract,' which matches the defining characteristic of a single premium annuity.