Which of the Following Is True About Disability Insurance

question 9

Multiple Choice

Which of the following is true about disability insurance?

• A)The probability of a 35 year becoming disabled for three months or longer before age 65 is 20 percent.
• B)Because the chance of becoming disabled is small, most people do not purchase disability insurance coverage.
• C)For people who become disabled longer than three months, the average length of time is 2.9 years.
• D)Older people are less likely to become disabled than younger people.

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Definitions:

Rent Expense

An expense account that records the cost incurred by a business to rent a property or equipment for its operations.

Fees Earned

Income earned from providing services or performing work for clients or customers.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, thereby preparing the accounts for the next accounting period.

Journalized

The process of recording financial transactions in a company's journal, detailing the accounts affected by each transaction.