A Participating Policy

question 123

Multiple Choice

A participating policy:

• A) increases the face amount of the policy.
• B) is a form of endowment insurance.
• C) may pay dividends.
• D) requires a savings function.
• E) contains no tax benefits.

---

Definitions:

Cash Equivalents

Short-term, highly liquid investments that can be easily converted into a known amount of cash with minimal risk of changes in value.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure consistency.

Reconciling Information

The process of verifying the accuracy and consistency of two sets of records, identifying and explaining discrepancies to ensure financial records match.

Cash Balance

The amount of money a company has in its cash accounts, including currency, coins, and balances in checking and savings accounts, at a given point in time.