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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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 the death benefit associated with a variable annuity contract?

It pays only the current market value of the investments at the time of the annuitant's death.

It guarantees that the beneficiary will receive at least the amount originally invested, regardless of investment performance.

It provides a fixed interest payment to the beneficiary for a specified period.

It guarantees the beneficiary will receive the highest account value achieved during the contract's life.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of a variable annuity contract. A variable annuity is a type of investment product that provides periodic payments to the annuitant, typically during retirement, and includes a death benefit feature.

Step 2: Analyze the death benefit feature of a variable annuity. The death benefit guarantees that the beneficiary will receive at least the amount originally invested, regardless of the investment's performance. This is a key feature designed to protect the original investment.

Step 3: Evaluate the options provided in the question. Compare each option against the definition and features of the death benefit in a variable annuity contract.

Step 4: Eliminate incorrect options. For example, the option stating 'It pays only the current market value of the investments at the time of the annuitant's death' is incorrect because the death benefit guarantees the original investment amount, not just the market value.

Step 5: Select the correct answer based on the analysis. The correct answer is: 'It guarantees that the beneficiary will receive at least the amount originally invested, regardless of investment performance.'