The Set Amount That You Must Pay Toward Medical Expenses

question 82

Multiple Choice

The set amount that you must pay toward medical expenses before the insurance company pays benefits is called

• A) Reimbursement.
• B) Out-of-pocket limit.
• C) Deductible.
• D) Internal limit.
• E) Indemnity.

Understand and apply the concept of insurance premiums and discounts.

Calculate vehicle depreciation and the cost implications over time.

Perform calculations related to vehicle operation, such as fuel efficiency and speed conversions.

Identify and understand the minimum legal requirements for car insurance.

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Definitions:

Accrual Adjusting Entry

An accounting entry made to record revenues that have been earned or expenses that have been incurred but not yet recorded through the normal transaction process.

Interest Expense

The financial charge for the use of borrowed capital, reflected in the income statement.

Insurance Expense

The cost associated with purchasing insurance policies to protect against risks, often reported as an operating expense.

Income Statement Accounts

Income statement accounts include all the revenue and expense accounts that determine a company's net income or net loss for a specific period.