Which of the Following Is True of Workers' Compensation

question 25

Multiple Choice

Which of the following is true of workers' compensation?

• A)employees are compensated for workplace injuries and illnesses as long as the employer's negligence played a part
• B)experience rating provides employers with a strong incentive to prevent injuries by making the workplace safer
• C)because employees are hurt through no fault of their own, workers' compensation is designed to replace all of the income lost due to inability to work
• D)employers can always avoid paying workers' compensation if it can be shown that the employee's own careless actions contributed to the injury
• E)none of the above

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Definitions:

Sum-Of-The-Years'-Digits Method

A method of accelerated depreciation calculating annual depreciation expense based on the sum of the years' digits of an asset's useful life.

Double-Declining-Balance Method

An accelerated depreciation method that expenses more of an asset’s cost closer to the beginning of its usable life.

Depreciable Asset Accounting

The accounting process that involves allocating the cost of a tangible asset over its useful life.

Depreciation Expense

The portion of the total cost of a depreciable asset that is allocated as an expense to the income statement in a given period.