This Term Life Insurance Policy Will Guarantee That You Will

question 75

Multiple Choice

This term life insurance policy will guarantee that you will pay the same premium for the duration of your policy.

• A) Renewable term
• B) Multiyear level term
• C) Decreasing term
• D) Limited payment
• E) Conversion term

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Definitions:

Direct Write-Off Method

A method of accounting for bad debts that involves charging unpaid customer accounts directly to the income statement when they are determined to be uncollectible.

Accounting Equation

The fundamental equation that ensures the balance of a company's financial records: Assets = Liabilities + Equity.

Uncollectible Accounts

Accounts that are considered to be uncollectable due to the debtor being unlikely to pay, also known as bad debt.

Notes Receivable

This refers to promissory notes that are receivable by a business, representing amounts due from others that they have promised to pay within a specific period.