Whole Life Insurance Differs from Term Life in Which of the Following

question 62

Multiple Choice

Whole life insurance differs from term life in which of the following ways?

• A)Whole life has a variable premium over the life of the policy, increasing as the policyholder gets older.Term life has a fixed premium forever
• B)Term life has a savings component whole life is pure insurance
• C)Term life is usually more expensive than whole life
• D)Whole life is a combination of term life insurance and a savings account

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Definitions:

FIFO Method

An inventory valuation method that assumes the items purchased or produced first are sold first, thus the remaining inventory consists of items acquired most recently.

Beginning Work In Process

The inventory of partially completed goods at the start of an accounting period.

Inventory Formula

The equation used to calculate the value of a company's inventory, commonly stated as Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory.

Physical Flow

The actual movement of goods or materials through a manufacturing process, from receipt of raw materials to delivery of finished products.