Which of the Following Statements About the Medicare Prescription Drug

question 28

Multiple Choice

Which of the following statements about the Medicare prescription drug benefit is (are) true?
I.Beneficiaries select a prescription drug plan and pay monthly premiums,with the premium reduced or waived for low-income beneficiaries.
II.The benefit provides first-dollar coverage of prescription drugs up to a maximum of $10,000 per year,but no coverage after $10,000.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the financial health and operational efficiency.

Payback Period

The duration needed to recoup the cost of an investment.

Straight-Line Depreciation

Straight-line depreciation is an accounting method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.