Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A)The interpolated terminal reserve is similar to a life insurance policy's cash surrender value.
• B)A gift occurs when the owner of an insurance policy irrevocably assigns all ownership rights in the policy to another.
• C)The payment of premiums on an insurance policy that is owned by another does not constitute a gift.
• D)The value of the gift of a life insurance policy is the amount it would cost to purchase a comparable policy on the date of the gift.

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Definitions:

Long-term Investments

Assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other financial instruments.

Intangible Assets

Non-physical assets that have value, such as intellectual property, brand recognition, and patents.

Prepaid Expenses

Payments for goods or services that will be received in the future, which are recorded as assets until they are actually used or consumed.

Adjusting Entry

A journal entry made at the end of an accounting period to align the books with the accrual basis of accounting.