An Employee Can Receive Health Insurance from a Former Employer

question 24

Multiple Choice

An employee can receive health insurance from a former employer after changing jobs. The enactment of which legislation makes this possible?

• A) Health Insurance Portability and Accountability Act (HIPAA)
• B) Omnibus Budget Reconciliation Act
• C) Balanced Budget Act of 1997
• D) Social Security Act of 1935

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Definitions:

Estimated Liabilities

Liabilities that are anticipated but not yet confirmed or quantified, often used in accounting for future expenses.

Estimated Bonuses

Anticipated bonus payments to employees based on performance criteria that have not yet been paid out.

Bonus Payable

A liability account on the balance sheet that represents the amount of bonuses a company owes to its employees but has not yet paid.

Warranty Expense

refers to the cost that a company expects to incur to repair, replace, or compensate for goods or services that are under warranty, recognized as a liability and expense in the financial statements.