Answer the Question Determine Your Health-Care Expenses for the Year with and Without

question 17

Multiple Choice

Answer the question.
-Assume that you have a health insurance plan with the following provisions: · Office visits require a copayment of $35
· Emergency room visits have a $450 deductible (you pay the first $450)
· Surgical operations have a $2500 deductible (you pay the first $2500)
· You pay a monthly premium of $400
During a one-year period, your family has the following expenses: $$\begin{array} { l l } \hline \text { Expense } & \text { Total cost (before insurance) } \\\hline \text { Feb 18: Emergency room } & \$ 740 \\\text { Mar 13: Office visit } & \$ 100 \\\text { Apr 14: Surgery } & \$ 8200 \\\text { May 12: Office visit } & \$ 120 \\\text { Nov 23: Emergency room } & \$ 1120 \\\hline\end{array}$$ Determine your health-care expenses for the year with and without the insurance policy.

• A)With policy $7210,without policy $10,680
• B)With policy $11,610,without policy $10,820
• C)With policy $8270,without policy $10,280
• D)With policy $3870,without policy $10,280

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Definitions:

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Accounting Cycle

The series of steps followed by an organization to record financial transactions and prepare financial statements over a specific accounting period.

Depreciation

Systematically dividing the cost of a tangible asset across its life of utility.

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Papers detailing a business's financial status, comprising the income statement, balance sheet, and statement of cash flows.