Nelda Suffered a Serious Stroke and Was Admitted to a Nursing

question 99

Multiple Choice

Nelda suffered a serious stroke and was admitted to a nursing home for 140 days.Nursing home charges,including physician fees and other related expenses were $33,000.Under Nelda's long-term care insurance contract,she received reimbursements of $36,000.How much of the $36,000 reimbursement must be included in Nelda's gross income in 2017?

• A)$0
• B)$1,400
• C)$36,000
• D)$3,000

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Definitions:

Financial Ratios

Financial ratios are quantitative measures derived from financial statement analysis to evaluate a company's financial health, performance, and viability.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Financial Decisions

Choices regarding the management of finances of an entity, including investment, budgeting, borrowing, and saving activities.

Cash Flow

The complete sum of cash moving in and out of a company, influencing its ability to cover short-term obligations.