Which of the Following Is Not a Characteristic of Term

question 44

Multiple Choice

Which of the following is not a characteristic of term life insurance?

• A) Premiums remain the same for your entire life
• B) It is the cheapest form of life insurance you can purchase
• C) It may include the option to renew
• D) It can be outlived

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Definitions:

Accumulated Impairment

The total sum of impairment losses recognized on an asset, reducing its carrying amount on the balance sheet.

Impairment Losses

Impairment losses are accounted for when the carrying value of an asset exceeds its recoverable amount, indicating that the asset is not expected to generate sufficient future economic benefits.

Reversals

Accounting actions undoing previous recognitions, such as reversing an expense or revenue recorded in earlier accounting periods.

Other Comprehensive Income

Income that is not included in net income and includes items that are not realized or not a result of daily operations, such as foreign currency translation adjustments.