Companies Are Using Many Approaches to Controlling Health-Care Benefits Costs

question 46

Multiple Choice

Companies are using many approaches to controlling health-care benefits costs, including three of the following. Which possible approach is most likely to be ignored?

• A)offering health promotion strategies
• B)shifting some of the costs to employees through increased co-payments
• C)determining the source of the medical condition
• D)requesting more government funding

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Definitions:

Journal Entries

Recorded transactions in the accounting ledger that reflect the financial activities of a business.

Voucher

A document or record acting as evidence for a transaction, or as an authorization for payment.

Net Method

An accounting technique where discounts for early payment are calculated and recorded as lower sales prices at the time of sale, in anticipation that discounts will be taken.

Periodic Method

An accounting method that records inventory purchases and sales periodically, typically at the end of an accounting period, instead of continuously.