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

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 considered a major tax advantage of life insurance?

Policy loans are always taxable as income.

Dividends received from a life insurance policy are taxed as ordinary income.

The death benefit is generally received income tax-free by beneficiaries.

Premiums paid are always tax-deductible for individuals.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the context of the question. This problem is related to the tax advantages of life insurance, which is a financial concept often discussed in personal finance and taxation. It is important to identify the key tax benefits associated with life insurance policies.

Step 2: Analyze each option provided in the question. Evaluate whether each statement aligns with the tax rules and benefits of life insurance policies. For example, policy loans are generally not taxable as income unless the policy lapses, and dividends received from a life insurance policy are typically not taxed as ordinary income but treated as a return of premium.

Step 3: Focus on the correct answer provided: 'The death benefit is generally received income tax-free by beneficiaries.' This is a major tax advantage of life insurance. The death benefit is typically exempt from federal income tax, which makes life insurance an attractive financial tool for estate planning.

Step 4: Clarify why the other options are incorrect. For instance, premiums paid for individual life insurance policies are generally not tax-deductible, and policy loans are not always taxable unless specific conditions are met.

Step 5: Summarize the key takeaway: The major tax advantage of life insurance is that the death benefit is usually received income tax-free by beneficiaries, making it a valuable financial instrument for protecting loved ones and managing estate taxes.