Which of the Following Is True of the Consolidated Omnibus

question 14

Multiple Choice

Which of the following is true of the Consolidated Omnibus Budget Reconciliation Act (COBRA) ?

• A)It requires employers to extend health insurance coverage for 36 months after termination due to gross misconduct.
• B)It requires employees to reduce the hours that lead to a gain of health insurance.
• C)The beneficiaries of employees who still have their health insurance have access to the same services.
• D)The beneficiaries of employees get free coverage even if the employees have lost access to their health insurance.
• E)The beneficiaries receive the advantage of purchasing coverage at the individual rate.

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or within the operating cycle, including cash, inventory, and accounts receivable.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable in a period.

Allowance for Bad Debts

A financial accounting technique to estimate and offset the amount of receivables that may not be collected.