Except in the Case of Qualifying Accelerated Death Benefits,if a Life

question 109

True/False

Except in the case of qualifying accelerated death benefits,if a life insurance policy is sold or surrendered for a lump sum before the death of the insured,the amount received is taxable to the extent it exceeds the premiums paid.

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Definitions:

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.

Operating Activities

refer to the primary revenue-generating activities of a business, including production, sales, and provision of services, reflected in its cash flow.

Financing Activities

This refers to transactions and events where cash flows into or out of a company to finance its operations and expansions, such as issuing equity or raising debt.

Company's Own Stock

Shares that were issued and subsequently reacquired by the issuing company, held in the company's treasury and available for various corporate uses.