All of the Following Are Reasons Why Employers Self-Insure Medical

question 45

Multiple Choice

All of the following are reasons why employers self-insure medical expense plans EXCEPT

• A)to reduce certain costs,such as premium taxes and commissions.
• B)to transfer the risk of medical expenses to another party.
• C)to retain funds until needed to pay claims.
• D)to eliminate the need to comply with separate state laws.

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Definitions:

Travel and Entertainment

Expenses incurred by an employee or a business in the course of business-related travels or entertaining clients, which may be deductible for tax purposes.

Property Development

It involves the process of purchasing land or property, making improvements or constructing new buildings, and selling or leasing them for profit.

Debits and Credits

Accounting entries that respectively increase asset or expense accounts and decrease liability, revenue, or equity accounts (for debits), and vice versa for credits.

Current Assets

Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer.