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3 years ago

How is long-term disability insurance different from health insurance?

Business

1 answer:

NARA [144]3 years ago

7 0

Answer:

The correct answer is letter "A": Health insurance covers the cost of healing the injury or illness, while long-term disability covers the money you would have made, such as a percentage of your salary.

Explanation:

It is important for employees to be enrolled in both health insurance and long-term disability plan. Health insurance would cover the medical expenses of assistance whether the individual can still work or if that person needs days off. However, the days of work lost will not be taken in charge. There is where long-term disability comes into play. Long-term disability pays the insured a percentage of the wage that person would have received while working.

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Parent Company holds 75 percent of Surrogate Company’s voting common shares. On December 31, 20X8, Parent recorded a loss of $20

Ne4ueva [31]

Answer:

Net Increase in Net Income will be $18,125

Explanation:

In simple words, when we consolidate accounts we NEVER take account of inter-company transactions which leads to profits OR losses.

So now we will eliminate the effect of the loss recognized by the parent company and the entry would be as under:

Dr Depreciation for the year At Parent percentage XX

Dr Retained Earnings (Balancing figure) XX

Cr Loss from sale of Equipment XX

The debit balance of depreciation at the parent percentage shows that the equipment is still 75% owned by the parent company. Hence the 75% of the per year depreciation must be recognized for the year.

Increase as the loss is added back to Net Income = $20,000

<u>Less</u> Depreciation for the year At Parent percentage = $20,000/8 * 75%

= ($1,875)

Net Increase in Net Income = $20,000 - $1,875 = $18,125

And Double Entry is as under:

Dr Depreciation for the year At Parent percentage $1,875

Dr Retained Earnings (Balancing Earnings) $18,125

Cr Loss from sale of Equipment $20,000

The depreciation and the loss will be settle in the Cost of Goods Sold in the consolidated income statement.

5 0

3 years ago

In September of Year 1, Hansen Company issued a note payable to borrow money from its bank. Principal and interest on the note w

Ghella [55]

Answer: True

Explanation:

As a result of the Accrual principle in accounting, transactions need to be recorded in the period that they occur in and not in the period they are paid for in.

The interest in Year 1 was incurred in year 1 and so will need to be recorded in year 1 for the period from issuance of the note to the last day of the accounting period.

This means that if the last day of the accounting period is December 31st, the interest for year 1 would have to be accrued from September to December of year 1 and recorded as year 1 interest.

4 0

3 years ago

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ahrayia [7]

In 2005, bankruptcy reform laws:

A: made student loans dischargeable in bankruptcy

B: required debtors to pay more of their debts in bankruptcy

Answer:

B: required debtors to pay more of their debts in bankruptcy

Explanation:

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which was passed in 2005, reviewed the bankruptcy process in America.

This law was reviewed because it wanted to prevent abuse of the bankruptcy process.

Therefore, In 2005, bankruptcy reform laws required debtors to pay more of their debts in bankruptcy.

6 0

3 years ago

At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show y

ella [17]

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.

Solution:

1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.

Formula used:

Debt-to-equity ratio = Total liabilities divided by owner's equity

For Clobes:

Total liabilities = 100,000

Owners' equity = 200,000

Debt-to-equity ratio = 100000/200000 = 0.5

For Snyder:

Total liabilities = 300,000

Owners' equity = 200,000

Debt-to-equity ratio = 300000/200000 = 1.5

For Welz:

Total liabilities = 300,000

Owners' equity = 100,000

Debt-to-equity ratio = 300000/100000 = 3

Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.

2. calculate Return on Equity(ROE)

Formula used:

ROE = Net income / Owner's equity

For Clobes:

Net income = 25,000

Owners' equity = 200,000

ROE = 25,000 / 200000 = 0.125

For Snyder:

Net income = 30,000

Owners' equity = 200,000

ROE = 30000 / 200000 = 0.15

For Welz:

Net income = 20,000

Owners' equity = 200,000

ROE = 20000 / 100000 = 0.2

Welz has the highest return of equity (ROE) of 0.2.

As a result, Welz is the most profitable company.

3. Return on assets:

Formula used

Return on Assets = Net income / Total assets

For Clobes:

Net income = 25,000

Total assets = 300,000

Return on Assets = 25,000 / 300000 = 0.08

For Snyder:

Net income = 30,000

Total assets = 500000

Return on Assets = 30000 / 500000 = 0.06

For Welz:

Net income = 20,000

Total assets = 400,000

Return on Assets = 20000 / 400000 = 0.05

Hence,

Clobes has the highest return on assets, which is 0.08.

5 0

3 years ago

I have a signed contract with one company this company sold my contract to another company that did the work and it wasn't done

schepotkina [342]

In specifics, it depends on the written up sales contract that the first company arranged with the one that did the work. But personally, I'd blame the second company. Personal opinions don't matter when it comes to legal matters though.. sorry.

7 0

4 years ago