Which of the Following Is True About Disability Insurance

question 27

Multiple Choice

Which of the following is true about disability insurance?

• A) It benefits the disabled employee only for the first year of disability.
• B) Payments under short-term plans are less than that of long-term plans.
• C) It pays about 50% to 70% of the employee's salary in case of disability.
• D) Most employers offer long-term disability plans.
• E) It offers coverage when the employee's dependent is disabled.

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Definitions:

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.

Permanent/Temporary

Pertaining to accounts in accounting where permanent accounts are balance sheet accounts that carry over balances into the next financial period, and temporary accounts are reset or closed to equity through retained earnings at the end of a period.

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded, reflecting the nature of the account.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including income statement, balance sheet, and cash flow statement.