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Each month ABC Company records the amount of after-tax long-term disability (LTD) insurance purchased by its employees who elected to purchase this insurance. The deduction is equal to the cost of the insurance. In the month following the deduction, the insurance company invoices ABC Company. ABC then pays the invoice. At the end of April, the balance in the LTD general ledger liability account is $438.40.
What does this balance represent?
- A . Amounts paid to the insurance company
B. Over-payments to the insurance company
C. Amounts that have been deducted but not paid to the insurance company
D. Amounts deducted from employees who have terminated employment
Suggested Answer: C
Posted : 21/10/2022 4:23 pm