Multiple Questions Answers
1.Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be
A. $35,500.
B. $31,250.
C. $36,250.
D. $33,350.
2.Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectable accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the estimate of aging receivables as its method of estimating uncollectable accounts?
A. $7,159 Using estimate of aging receivables
B. $5,067
C. $4,250
D. $5,525
3.Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectible accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the percent of credit sales as
its method of estimating uncollectible accounts?
A. $5,525
B. $5,067
C. $7,159
D. $4,250 Using 5% of credit sales
4. Domestic Co. establishes Foreign Subsidiary Co. at the beginning of the current reporting year. The primary analytical consideration resulting from this business decision is the:
A. establishment of a separate legal entity.
B. additional financial statements produced by the newly created entity.
C.XXXcreation of more detailed segment disclosures.
D. reporting of Domestic Co.’s financial statements on a consolidated basis.
5. Assume that an entity depreciates equipment purchased this year on a straight-line basis for financial reporting purposes and uses an accelerated method for tax purposes. If the company acquires more expensive equipment in the next reporting year, the company’s next balance sheet would report a ____________ than the current balance sheet.
A. larger deferred tax liability
B. smaller deferred tax liability
C. larger deferred tax asset
D.XXX smaller deferred tax asset
6. In the 1990s, many HMOs felt their participation in Medicare HMOs was essential for their business strategy. The interest of health plans in contracting with Medicare arose from the belief that:
A.XXX it could be profitable.
B. employers wanted HMO options for retirees.
C. contracts with Medicare guaranteed at least a 5-year contract.
D. Both B and C are correct.
7. A competency approach to job analysis does NOT include:
A. performance appraisal.
B. discovering unassigned duties.
C. assessing the employee’s attitude on the job.
D. compensation.
E.XXX employee selection criteria.
8. Policies differ from procedures and rules. Which of the following is the correct definition for a policy? A policy:
A. is a general statement about the organization’s position on an issue.
B.XXX defines the way an organization deals with broad issues.
C. defines expected behaviors of employees at work.
D. summarizes the legal obligations of the health care organization.
9. Sally, an R.N. who has worked in an ICU for seven years, is working with Joan, a recently graduated nurse, and new to the ICU. Sally is demonstrating the correct procedure for infusion therapy with a patient. Instruction on proper procedures would be considered:
A.XXX employee development.
B. integrated employee training.
C. team building.
D. the delivery phase of the three-phase training process.
