An employer-sponsored medical plan that allows each employee to have pretax earnings deposited into a specially designated account for the purposes of paying specific types of expenses is called a "flexible spending account".
<h3>What is flexible spending account?</h3>
A flexible spending account, often referred to as a flexible spending arrangement, is a specific account that you fund and utilize to cover a number of your out-of-pocket medical expenses.
Some features of flexible spending account are-
- FSA monies can be used to cover copayments and deductibles, but not insurance premiums.
- Both over-the-counter medicines with a prescription from a doctor and prescription medications are eligible for FSA reimbursement. Insulin reimbursements are accepted without a prescription.
- Medical items like bandages, equipment like crutches, and diagnostic tools like blood sugar test kits can all be paid for with FSAs.
Therefore, as long as your annual medical bills and/or costs for taking care of dependent are reasonably predictable. On average, every dollar invested will result in tax savings of 20–25%. Your savings grow as your income does.
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Answer and Explanation:
The computation is shown below:
1. Before computing the stockholder equity first we have to determine the total assets and the total liabilities which is shown below:
As we know that
Total Assets = Current Assets + Net Fixed Assets
= $2,090 + $9,830
= $11,920
Now
Total Liabilities = Current Liabilities + Long-term Debt
= $1,710 + $4,520
= $6,230
So,
Stockholders’ Equity = Total Assets - Total Liabilities
= $11,920 - $6,230
= $5,690
2. The net working capital is
Net Working Capital = Current Assets - Current Liabilities
= $2,090 - $1,710
= $380
<span>It is due to the profit maximising rule in a monopoly is Marginal Revenue=Marginal Costs (MR=MC). If the price or the output is below the ATC then the firm is operating at a loss; however, should shut down production until price or output is less than AVC.</span>
Diversification is important in investing because "It helps you to balance your risk across different types of investments".
Explanation:
Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.