Which of the Following Is True of Life Insurance Companies

question 32

Multiple Choice

Which of the following is true of life insurance companies?

• A) They primarily hold long-term assets that are not particularly liquid.
• B) They primarily hold short-term liquid assets.
• C) Payouts to policyholders are relatively predictable.
• D) Both A and C of the above are true.

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Definitions:

Freight-in Charges

Costs incurred in bringing inventory to its present location and condition, typically including transportation charges.

LIFO Retail Inventory Method

An inventory costing method that assumes the last items placed in inventory are sold first, not necessarily reflecting the actual physical flow of merchandise.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Net Markups

The difference between the cost of a good or service and its selling price, after accounting for discounts, allowances, or returns.