In a _______________, the Employer Acts as the Insurance Company

question 14

Short Answer

In a _______________, the employer acts as the insurance company and pays for its employees' health care costs out of its own pocket.

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Definitions:

Noncumulative

A term often referring to certain preferred stock dividends that do not accumulate if unpaid, meaning if a dividend is skipped, it is not owed in the future.

Nonparticipating

A term often related to insurance policies or preferred stocks that do not have the right to share in additional earnings or dividends beyond a specified amount.

Journal Entries

Journal entries are the method of recording all the financial transactions of a business in the accounting system, as part of the double-entry bookkeeping system.

Treasury Stock

Shares of a company's own stock held by the company itself, acquired through buybacks.