Which of the Following Is True of Long-Term Disability Plans

question 42

Multiple Choice

Which of the following is true of long-term disability plans?

• A)The payments typically begin after 48 weeks of disability.
• B)They usually provide 50 percent to 75 percent of the employee's base pay.
• C)They provide protection only if the disability was caused due to the nature of work.
• D)They provide a fixed annual income to all retired employees.
• E)They are taxable if the employee pays the full cost of the plan.

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Definitions:

LIFO Method

Last In, First Out method, an inventory costing method where the last items purchased are the first ones sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.