Payment Plans Have Several Methods for Death Proceeds

question 45

Multiple Choice

Payment plans have several methods for death proceeds.In the life income method:

• A)there is even distribution of the proceeds until depleted.
• B)there is even distribution of the proceeds over a certain number of years.
• C)the beneficiary leaves the proceeds with the insurer and collects only the interest.
• D)there is even distribution of the proceeds over the life of the beneficiary.
• E)there is a lump-sum distribution.

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Definitions:

Ending Inventory

The ultimate amount of products ready for purchase at the close of a financial period.

Inventory Costing

The method of calculating the cost of goods sold and ending inventory value, which can include approaches like FIFO, LIFO, and weighted average.

Periodic FIFO

A method of inventory valuation where goods purchased first are assumed to be sold first, calculated periodically at the end of an accounting period.

Cost of Goods Sold

Costs directly related to the creation of products a company sells, which encompass both the cost of materials and labor.