Life Insurance Differs from All Other Types of Insurance in That

question 62

Multiple Choice

Life insurance differs from all other types of insurance in that:

• A)it cannot be purchased by the one who benefits from the loss.
• B)it does not pertain to risk.
• C)it is federally insured.
• D)it doesn't pay unless there is a loss.

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Definitions:

Indirect Method

A reporting approach used in cash flow statements where net income is adjusted by changes in non-cash accounts to determine cash flow from operating activities.

Net Cash Flow

The difference between a company's cash inflows and outflows within a defined period.

Operating Activities

Part of cash flow that represents the revenues and expenses directly related to the core business operations.

Financial Statements

A set of formal records that outline the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.