Which of the Following Statements About Group Short-Term Disability Income

question 54

Multiple Choice

Which of the following statements about group short-term disability income plans is true?

• A)Most plans have a short elimination period for accidents but cover sickness from the first day of disability.
• B)Disability is usually defined in terms of a worker being unable to work in any substantial,gainful employment.
• C)The amount of disability income benefits typically is equal to some percentage of a worker's normal earnings.
• D)Most short-term plans cover occupational disability only.

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Definitions:

Salvage Value

Salvage Value is the estimated residual value of an asset at the end of its useful life, expected to be recovered once the asset is no longer useful in operations.

Straight-Line Method

A method of allocating the cost of an asset evenly across its useful life for accounting and depreciation purposes.

Completed-Contract Method

An accounting method where revenue and expenses are recorded only when a contract is completed, used primarily for long-term projects.

Percentage-Of-Completion Method

An accounting technique that recognizes revenue and expenses related to long-term projects as a percentage of the work completed during the period.