Which of the Following Is Not True Regarding Employer Disability

question 63

Multiple Choice

Which of the following is not true regarding employer disability insurance?

• A) Disability benefits are provided for very long periods, usually up to 30 years.
• B) About half of all large and medium-sized firms offer an optional disability plan through an insurance company.
• C) The premiums charged through group plans are normally low.
• D) A typical disability policy covers about 60% of the employee's salary.

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Definitions:

Compensation Costs

The expenses incurred by a company to pay employees, including salaries, benefits, bonuses, and social security contributions.

Grant Date

The date on which an employee receives a stock option or grant as part of their compensation package.

Stock-Based Compensation

A method of paying employees or service providers using shares of the company's stock, reflecting a form of non-cash compensation.

APB Opinion

Issued by the Accounting Principles Board, these were intended to shape accounting standards and guidance before the board was replaced by the Financial Accounting Standards Board (FASB).