The Type of Policy That Would Provide Coverage for Custodial

question 78

Multiple Choice

The type of policy that would provide coverage for custodial care in a nursing home is:

• A) short-term health insurance.
• B) long-term care insurance.
• C) major medical insurance.
• D) special risk insurance.

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Definitions:

Prepaid Insurance

An asset account representing insurance premiums that have been paid in advance and are gradually expensed over the period of coverage.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to record unbilled, uncollected, or unpaid transactions, ensuring the financial statements are accurate.