What Is a Strategy Employers Use to Reduce Their Costs

question 59

Multiple Choice

What is a strategy employers use to reduce their costs for employee medical benefits?

• A) Not providing health care benefits for their employees altogether
• B) Extending coverage to more of their part-time workers to spread the cost among more people
• C) Lowering the proportion the employee pays for premiums
• D) Passing savings on benefits along to employees

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Definitions:

Merchandise

Goods that are bought and sold by a business in the regular course of its operation.

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.

End-of-period Spreadsheet

A tool used in accounting to gather all the financial data and adjustments needed to prepare financial statements at the end of an accounting period.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.