Q&A Hero

Q: Suppose 10 percent of the families receive 10 percent of the income, 20 percent of the families receive 20 percent of the income, and so forth. The Lorenz curve would beA) a straight line at a 45-degree angle from the origin. B) a straight line at a 30-degree angle from the origin. C) the most bowed curve possible.D) the horizontal axis.

Q: Warren Peace passed away, with his will leaving the bulk of all his worldly possessions to his friend Leo. The following transactions occurred with respect to Warren's estate. 1. Warren's estate inventory included 10,000 shares of Newberry Industries, selling at the time of Warren's death at $56 per share. There were no outstanding dividends at the time Warren died, but two weeks later, a $1.00 per share dividend was declared. 2. Warren only designated one item that was not to be left to Leo. Warren's family had a signed, first-edition copy of a classic novel that was valued and included in the estate inventory at $67,000, which Warren left to the local library. The book is located and delivered. 3. Funeral expenses are paid in the amount of $7,880. 4. A statement comes from the insurance company indicating there are multiple charges from Warren's final hospital stay that will not be covered and are the responsibility of the estate. These fees amount to $39,000 and were not known at the time the estate inventory was prepared. The charges are confirmed and will be paid when the separate bills arrive from the hospital and professionals who billed them to the insurance company. 5. A check is received from Newberry Industries for the dividends declared in the first transaction, above. Required:Prepare the journal entries for the listed transactions. Disregard the impact of estate and income taxes.

Q: Recently, two construction industry unions also left the AFL -CIO and joined with ironworkers and bricklayers unions to formA) the National Brotherhood of Teamsters.B) the National Construction Alliance. C) the American Federation of Workers. D) Change to Win.

Q: Rusty Nail died in the summer of 2011. The following transactions occurred relating to Rusty's estate.1. Rusty's estate included a $50,000 Certificate of Deposit. When Rusty died, there was $250 accrued but unpaid interest. When the check was received for the normal semiannual interest payment, it was in the amount of $1,250.2. Rusty's will requested a specific transfer to the local playhouse in the amount of $20,000. Avery's estate should be adequate to cover all obligations and devises, and the amount is paid.3. A fee for probate court is paid amounting to $1,400.4. Funeral expenses are paid amounting to $13,000.5. A bill is received from the anesthesiologist relating to Rusty's last hospital stay for $22,000. The bill is not covered by insurance, and was not included in the estate inventory. The bill is verified and paid.Required:Prepare the journal entries for the listed transactions. Disregard the impact of estate and income taxes

Q: A 20 percent increase in the wage rate induces firms in an industry to reduce quantity demanded for labor by 5 percent in the first year. Five years later we would expect, other things constant,A) the reduction in the quantity demanded of labor to be much greater than 5 percent.B) the reduction in the quantity demanded of labor to be less than 5 percent. C) the reduction in the quantity demanded of labor to be about 5 percent.D) the quantity demanded of labor to be back to its original level.

Q: Avery died testate early in 2011. The following transactions occurred relating to Avery's estate.Avery's estate included bonds with a fair (market) value of $120,000. On the date of Avery's death, there was $2,000 of accrued but unpaid interest. Two months after Avery's death, a check arrived in the amount of $3,000, representing the normal semiannual interest payment.Avery's will stated a specific transfer to the Bird Sanctuary in the amount of $10,000. Avery's estate should be adequate to cover all obligations and devises, and the amount is paid.Funeral expenses amounted to $12,500.A bank statement is received from the First National Bank indicating a cash balance of $8,600. This bank account was not known or included on the estate inventory.Probate fees are paid to the court amounting to $900.Required:Prepare the journal entries for the listed transactions. Disregard the impact of estate and income taxes.

Q: The FTC isA) the act that prevents producers from driving out smaller competitors by means of selected discriminatory price cuts.B) the commission that investigates unfair competitive practices such as misleading advertising.C) an agency which has been set up to regulate the federal government. D) the agency set up to regulate hospitals.

Q: What is the dollar amount of the federal lifetime maximum gift tax exclusion?A) $24,000B) $600,000C) $1,000,000D) $2,000,000

Q: Which is FALSE about perfect competition?A) There are numerous sellers.B) Market entry and exit is unrestricted. C) There is no ability to set price.D) There is considerable product differentiation.

Q: What is the current annual gift amount that can be left to an individual donee, without being subject to a federal gift tax?A) $6,500B) $13,000C) $19,500D) $26,000

Q: Vertical merger occurs whenA) two firms merge where one had sold its output to the other as an input.B) the merger moves the combined firm onto the horizontal portion of its long -run average cost curve.C) two firms merge where each is about the same size.D) two firms producing a similar product merge.

Q: In reference to the potential taxation of an estate, which of the following statements is correct?A) An estate may be subject to taxation at both the state and federal level.B) The taxable amount of an estate is based on the book values of all estate assets at the date of death.C) The estate value is not reduced by such expenses as funeral expenses, bequests to qualified charities, or state-level taxes.D) Taxable estate assets do not include proceeds from life insurance policies.

Q: The monopolistically competitive firmʹs economic profits tend toward zero in the long run. Why is this so?A) Monopolistically competitive firmʹs are rarely able to maintain the corporate discipline necessary to sustain profits in the long run.B) If a monopolistically competitive firm is profitable for more than 2 years, the Justice Department orders a corporate restructuring to pull the company back to a normal rate of return.C) In the long run, other firms will successfully offer substitutes for the profitable firmʹs product, and competition will eliminate economic profits.D) Even though the monopolistically competitive firm can successfully maintain barriers to entry, keeping competition at bay becomes very expensive.

Q: Which type of trust is created pursuant to a will?A) A testamentary trustB) A Crummey trustC) A generation-skipping trustD) A life estate trust

Q: Use the above figure. The profit-maximizing output will beA) Q1. B) Q2.C) Q3. D) None of the above are correct.

Q: What is the document prepared by the executor or administrator to show accountability for estate property received and maintained or disbursed in accordance with the will?A) The Administrator/Executor's Fiduciary ReportB) The charge-discharge statementC) The Administrator/Executor's Testamentary ReportD) The Administrator/Executor's Principal/Income Report

Q: Competitive pricing is efficient becauseA) the price that consumers pay reflects the opportunity cost to society of producing the good.B) firms make positive economic profits in long-run equilibrium. C) average revenue equals average cost.D) firms produce above the minimum efficient scale.

Q: Under the Revised Uniform Principal and Income Act, gains or losses incurred on investments that occur after the death of the decedentA) are considered to be income of the estate.B) are included in the inventory fair value at the time of death.C) are taxed separately from other estate income.D) are adjustments to the principal of the estate.

Q: A perfectly competitive firm is selling 300 units of output at $4 each. At this output level, total fixed cost is $100 and total variable cost is $500. The firmA) is maximizing its profit.B) is earning a profit, but not necessarily the maximum profit. C) is experiencing an economic loss.D) should shut down.

Q: In reference to estate principal and income, which of the following statements is correct?A) A primary reason for dividing estate principal and estate income is that the beneficiaries are often different.B) In accounting for the decedent's estate, the receipts earned but not yet received at the date of death are considered estate income.C) After death, earnings from income-producing property owned at the time of death are considered estate principal.D) Expenses incurred after death to administer the estate are first charged against income earned after death.

Q: At the output rate at which diminishing marginal product begins, a firm will experienceA) constant average total costs. B) increasing average fixed costs.C) increasing marginal costs. D) decreasing average variable costs.

Q: Which of the following are entitled to the remainder of the estate after all other rightful claims on the estate have been satisfied?A) Remainder beneficiariesB) Residual beneficiariesC) Alternate beneficiariesD) Secondary beneficiaries

Q: The amount of calendar time associated with the long runA) is less than five years. B) is greater than one year. C) is between one and five years. D) varies by industry.

Q: If estate assets are insufficient to pay all claims in full, under the Uniform Probate Code which of the following would be paid first?A) Reasonable funeral expensesB) Necessary medical and hospital expenses of the last illness of the decedentC) Unsecured debtsD) The costs and expenses of administration of the estate

Q: An organization that brings together the factors of production is called A) an industry. B) a conglomerate. C) a plant. D) a firm.

Q: Under the Uniform Probate Code, the personal representative must publish for what time period a notice in a newspaper of general circulation in the county in which the decedent resided?A) For one weekB) For two weeksC) For three weeksD) For five weeks

Q: In the above figure, budget line DF would swivel in to the left ifA) the price of bagels increased. B) the price of bagels decreased. C) the price of coffee increased. D) the price of coffee decreased.

Q: In reference to the Uniform Probate Code, which of the following statements is correct?A) The Code entitles the surviving spouse to a homestead allowance that is exempt from, and has priority over, all claims against the estate.B) The Code provides a homestead allowance to the surviving spouse of $100,000.C) The Code provides an allowance for dependents, after other claims have been settled.D) The Code entitles the surviving spouse to claim 100% of the estate after claims to third-parties are settled.

Q: In order to maximize utility, a consumer should allocate money income so thatA) the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.B) the total utility derived from each product consumed is the same.C) the marginal utility obtained from the last dollar spent on each product is the same.D) the elasticity of demand on all products purchased is the same.

Q: The executor or administrator of a will is required to prepare and file an inventory of property owned by the deceased within what time period?A) One month of appointmentB) Two months of appointmentC) Three months of appointmentD) 45 days of appointment

Q: What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer.

Q: Under the amended Uniform Probate Code, if the decedent dies intestate, and if there are descendants from a prior marriage or relationship, the surviving spouse receives what?A) $25,000 and 2/3 of the remaining intestate estateB) $200,000 and 1/3 of the remaining intestate estateC) $50,000 and 1/2 of the remaining intestate estateD) $100,000 and 1/2 of the remaining intestate estate

Q: If the price of oil goes up by 50 % and the quantity demanded goes down by 25%, the absolute value of the price elasticity of demand isA) 0.25. B) 0.50. C) 0.75. D) 1.00.

Q: Which of the following is a gift of an object to a devisee?A) A general deviseB) A specific deviseC) A testamentary allocationD) An administrative devise

Q: Exclusive rights of ownership that allow the use, transfer, and exchange of property are calledA) common property rights. B) nonexclusive property rights.C) private property rights. D) public property rights.

Q: Under the Uniform Probate Code, the personal representative must inform the heirs and devisees of his or her appointment and provide other selected information within how many days of the appointment?A) 10 daysB) 20 daysC) 30 daysD) 60 days

Q: Health care costs have been rising due toA) an aging population. B) new technologies.C) third-party financing. D) All of the above are correct.

Q: The more bowed the Lorenz curve, theA) richer the society.B) more unequal the distribution of money income.C) poorer the society.D) more equal the distribution of income.

Q: In reference to the probate process, which of the following statements is correct?A) The personal representative of the deceased can file a petition with the appropriate probate court requesting that an existing will be probated.B) The Uniform Probate Code varies from state to state.C) The Uniform Probate Code is applied to all wills found to be valid, and to wills found to be invalid in probate court.D) The Uniform Probate Code is applied to all wills found to be valid, but not to wills found to be invalid in probate court.

Q: Under the Uniform Probate Code, the term "personal representative" refers to which of the following?A) An executor, but not an administratorB) An administrator, but not an executorC) Neither an executor nor an administratorD) Either an executor or an administrator

Q: In 2005, which union organization was formed out of the AFL -CIO membership?A) National Brotherhood of Teamsters B) Service Employees International UnionC) American Federation of Workers D) Change to Win

Q: In reference to estates, which of the following statements is correct?A) An estate comes into existence at the death of an individual.B) If the deceased person had a valid will at the time of death, he or she is said to have died intestate.C) The heir receiving the largest portion of the estate is typically appointed the executor.D) Claims may be made for up to seven years against an estate.

Q: We would expect unions to have a more difficult time negotiating higher wages for their members whenA) labor represents a small portion of total costs.B) the product produced makes up a small portion of familiesʹ budgets. C) the product produced has several close substitutes.D) there are not good substitutes for labor in the production process.

Q: In reference to accounting for trusts or estates, which of the following statements is correct?A) Estates are subject to taxation, but trusts are not.B) Estates are subject to probate laws that vary widely across the fifty states.C) Estates are subject to income taxes at the federal level, but not at the state level.D) Estates and trusts are taxed regardless of size.

Q: ʺUnfair or deceptive acts or practices in commerceʺ were prohibited by theA) Clayton Act.B) Clayton Act as amended by the Robinson -Patman Act. C) Federal Trade Commission Act.D) 1938 amendment to the Federal Trade Commission Act.

Q: Which of the following phrases is frequently used to refer to estate or trust accounting?A) Non-profit accountingB) Testamentary accountingC) Fiduciary accountingD) All of the above phrases are used to refer to estate or trust accounting.

Q: A market with one seller, considerable influence over price, high barriers to entry, a homogeneous product, and non -price competition to allow for price discrimination is known asA) perfect competition. B) monopolistic competition.C) oligopoly. D) monopoly.

Q: Record the following transactions for Porter Hospital, a private, nonprofit hospital:1. Gross patient services revenues: $25,000,000. Billed to patients. 2. Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3. Purchased equipment by issuing a 5-year note for $200,000. 4. Received cash donations restricted for a capital building addition program, $5,100,000. 5. Incurred and paid $1,700,000 of contractor billings for the capital building program.

Q: Horizontal merger occurs whenA) two firms merge where one had sold its output to the other as an input.B) the merger moves the combined firm onto the horizontal portion of its long -run average cost curve.C) two firms merge where each is about the same size.D) two firms producing a similar product merge.

Q: Match each of the following descriptions with the correct category for a private, not-for-profit hospital. Each term may be used more than once.Categories:A. RevenueB. Deduction from RevenueC. ExpenseD. Gains / Losses_____1. Courtesy allowances provided to hospital patients_____2. Premium fees_____3. Fees paid to the doctors_____4. Charges to patients for patient services_____5. Wages paid to nursing staff_____6. Contractual allowances arranged with third-party payors_____7. Cafeteria sales_____8. Wages paid to hospital janitors_____9. Depreciation expense on hospital equipment_____10.Other operating revenueunrestricted

Q: In the long run, the monopolistically competitive firmʹs demand curve will A) intersect the ATC at its minimum point. B) intersect the ATC curve somewhere past the minimum point. C) become tangent to the ATC curve at its minimum point. D) become tangent to the ATC curve somewhere to the left of its minimum point.

Q: A private, not-for-profit university received donations of $800,000 in 2011 that were restricted to capital improvements of the football stadium. The university spent $670,000 on capital improvements for the stadium in 2011 and recorded depreciation of $130,000.In 2011, an alumnus contributed a $1,500,000 endowment for football scholarships with all endowment income restricted for that purpose. Endowment income totaled $75,000 for the year and scholarship awards were $68,000.Required:Prepare the appropriate journal entries for the university for these transactions.

Q: If a monopolist is producing at an output rate at which P = ATC, thenA) its economic profit will be zero. B) its economic profit will be positive.C) it is maximizing its profits. D) it is minimizing its losses.

Q: The following information is available about the operations for a private, not-for-profit university. 1. The university sold $20,000,000 of 5% bonds to finance the construction of a new building for the business school. The bonds were sold on January 1 and pay interest on December 31 of each year. The bonds were sold at par and mature in 20 years. 2. The university received $7,500,000 cash in alumni and corporate donations for the new business school building. 3. The building was constructed at a total cost of $22,000,000 and the contractor was paid in full. 4. Interest was paid on the bonds. 5. Depreciation on the new building the first year was $275,000. Required:Prepare the appropriate journal entries for the university for these transactions.

Q: When marginal cost pricing occurs,A) price equals the additional cost society incurs in producing the next unit of an item.B) the firm can only break even if it does not set price to marginal cost. C) price equals average variable cost but exceeds average total cost.D) the firm is at the shutdown point.

Q: A private, not-for-profit university received donations of $1,000,000 cash in 2011 that were restricted to certain research projects on sustainability, with an emphasis on reducing the campus waste. The university incurred and paid $450,000 of expenses on this research in 2011. In 2011, an alumnus contributed a $700,000 endowment for energy research with all endowment income restricted for that purpose. Income totaled $35,000 for the year. Energy research expenses incurred and paid were $22,000. Required:Prepare the appropriate journal entries for the university for these transactions.

Q: The loss-minimizing output for the perfectly competitive firm occurs at the point at whichA) TR - MR = minimum. B) TR - TC = maximum. C) MR = MC. D) TC - ATC = maximum.

Q: Prepare journal entries to record the following transactions for a private, not-for-profit university. 1. Tuition and fees assessed total $10,000,000, 80% of which was collected by year-end; tuition scholarships were granted for $1,300,000, and $650,000 was expected to be uncollectible. 2. Revenues collected from sales and services by the university bookstore were $1,450,000. 3. Salaries and wages paid were $5,600,000, $300,000 of which was for employees of the university bookstore. 4. Financial aid funds of $700,000 were received from the Pell Grant program; the funds were then disbursed to the appropriate students. 5. Contributions of $600,000 were received; $30,000 was restricted for the athletic department and the balance was unrestricted. An additional $70,000 was pledged to the athletic department by the alumni. 6. Athletic equipment was purchased with $42,000 previously set aside for that purpose.

Q: Marginal cost begins to rise whenA) diminishing marginal product begins. B) diminishing marginal product ends.C) average total cost falls. D) fixed cost falls.

Q: In the long run, a firm can changeA) nothing. B) only one input, such as plant size.C) all inputs. D) None of the above are correct.

Q: Childrens Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1. Gross patient services charges totaled $6,400,000. 2. Included in the above revenues are: charity services, $210,000; contractual adjustments, $2,400,000; and courtesy allowances, $37,000. 3. Received a donation of marketable securities with a fair value of $165,000 for the purchase of new diagnostic equipment. 4. The marketable securities were sold for $182,000 and diagnostic equipment was purchased at a cost of $210,000. 5. Revenue from the hospital gift shop was $58,000 and from the cafeteria revenues were $227,000. Received cash from both enterprises. 6. Incurred and paid nursing service costs of $1,700,000 and general service costs of $400,000. Required:Prepare journal entries for the aforementioned transactions.

Q: General Hospital is a private, not-for-profit hospital. The following information is available about the operations.1. Gross patient services charges totaled $3,700,000.2. Included in the above revenues are: charity services, $360,000; contractual adjustments, $1,200,000; courtesy allowances, $20,000; and estimated uncollectible amounts, $250,000.3. Premium fees receipts were $110,000.4. Purchased $75,000 of hospital supplies on account, with payments on that account, $36,000.5. Received cash donations for a new hospital wing of $2,500,000.6. Paid contractor $275,000 for billed costs toward the new hospital wing.Required:Prepare journal entries for the aforementioned transactions.

Q: A disadvantage of corporations over a proprietorship or partnership is in theA) legal liability. B) ability to raise funds.C) taxation system. D) future of the firm when an owner dies.

Q: Marshfield Hospital is a private, not-for-profit hospital. The following transactions occurred: 1. Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $180,000. The cash gifts were used in the current year in accordance with restrictions. 2. Unrestricted pledges of $800,000 were received. Ten percent of the pledges typically prove uncollectible. Additional cash contributions during the year totaled $300,000. 3. Gifts in kind were received that were sold at a silent auction for $23,000. The fair value of the donated gifts in kind could not be reasonably determined. 4. Expenses were incurred and paid as follows: Salary of doctor, $190,000; facility rental, $36,000; purchases of supplies, $8,000; and utility costs, $10,000. 5. Marketable securities with a fair value of $650,000 were received as a donation with a stipulation that the hospital use the funds to purchase suitable land for the hospital. Required:Prepare journal entries for the aforementioned transactions.

Q: In the above figure, point C isA) preferred to points G, A, and B. B) preferred to points A and B. C) less preferred than point G. D) less preferred than point H.

Q: Coats for Kids is a private, not-for-profit organization that provides free coats for children in the suburbs of a large city. Coats for Kids had the following transactions in 2011. 1. Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $50,000. The cash gifts were used in 2011. 2. Unrestricted pledges of $40,000 were received. They are expected to be collected in 2011. Ten percent of the pledges typically prove uncollectible. Additional cash contributions during the year totaled $65,000. 3. A donor donated investments with a fair value of $10,000. The investments can be sold and used only for the purchase of coats for children. 4. The following expenses were incurred and paid: Salary of director, $15,000, classified as supporting services. The remaining expenses of $47,500 were classified as program services. 5. Pledges of $250,000 were received during the year. The pledges were restricted for use in purchasing new delivery vans. All of these pledges are expected to be collected in the next fiscal year. Ten percent are estimated to be uncollectible.Required:Prepare the journal entries for the aforementioned transactions.

Q: Jill likes lobsters but she does not eat lobsters in every meal. How can utility theory explain this?

Q: The following information was taken from the accounts and records of the Helping Hands Foundation, a private, not-for-profit organization classified as a VHWO. All balances are as of June 30, 2011, unless otherwise noted.Unrestricted Support - Contributions $2,000,000Unrestricted Support - Membership Dues 640,000Unrestricted Revenues - Investment Income 80,000Temporarily restricted gain on sale of investments 25,000Expenses - Program Services 1,860,000Expenses - Supporting Services 350,000Expenses - Supporting Services 550,000Temporarily Restricted Support - Contributions 640,000Temporarily Restricted Revenues - Investment Income 60,000Permanently Restricted Support - Contributions 100,000Unrestricted Net Assets, July 1, 2010 450,000Temporarily Restricted Net Assets, July 1, 2010 2,100,000Permanently Restricted Net Assets, July 1, 2010 60,000The unrestricted support from contributions was received in cash during the year. The expenses included $1,350,000 paid from temporarily-restricted cash donations.Required:Prepare Helping Hands' Statement of Activities for the fiscal year ended June 30, 2011.

Q: If the price of wireless phone service decreases and the demand for wired phone services decreases, then wired and wireless phone services areA) substitutes. B) complements. C) inferior goods. D) elastic goods.

Q: Consider the following data:The absolute value of the price elasticity of demand for product A isA) 0.44. B) 1.80. C) 0.56. D) 2.25.

Q: The Trasque Hospital is a nongovernmental, not-for-profit hospital. During 2011, they had the following transactions. 1. Trasque's standard charges for services rendered amounted to $550,000. Contractual adjustments on those amounts with third-party payors amounted to $230,000. Bad debts on the remaining balance are estimated to be 10%. 2. The hospital received a cash donation of $20,000 to be used for medical equipment. 3. The hospital also received rent from a local shelter that uses the basement of their facility for overflow housing, amounting to $6,000 per year. 4. The hospital paid the following costs: Professional fees (doctors and physician assistants), $80,000; Nursing services, $70,000; and administrative services, $40,000. 5. The hospital paid for pharmaceuticals and medical supplies amounting to $110,000. The hospital had an agreement with the pharmaceutical and medical supply vendors to carry all inventory on consignment, due to their not-for-profit status. As a result, items are only paid for as consumed, and all inventory belongs to the vendors. Required:Prepare the journal entries for Trasque for 2011.

Q: Changing the ownership of the ocean from common property to private property wouldA) ensure that this resource would be allocated in a more efficient manner.B) ensure that this resource would be allocated in a less efficient manner than under common property rights.C) not be economically desirable.D) result in no appreciable change in efficiency of utilization of this resource.

Q: Carousel Clothes is a voluntary health and welfare organization that provides gently-used second-hand clothes to those in need. They had the following transactions in 2011.1. Cash gifts were received in the amount of $60,000, of which $13,000 had been pledged in the prior year. 2. Pledges made in the current year but not yet fulfilled amounted to $39,000. Ten percent of the pledges typically prove to be uncollectible. Pledges are made for 2011. 3. An office supply company donates office furniture to the VHWO. The fair value of the furniture is $40,000. No restrictions were placed on the donation. 4. The following expenses were incurred and paid: director's salary, $15,000; facility rental, $18,000; cleaning and repair costs for clothes, $29,000; and purchase of supplies consumed in tagging and distribution of clothes, $5,000. The director's salary is categorized as Support Services and the rest of the costs are Program Services. 5. Restricted pledges were received during the year for $450,000. The pledges are restricted for the construction of a new facility.Required:Prepare the journal entries for Carousel for 2011.

Q: The above figure supports all of the following statements regarding health care EXCEPTA) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded.B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously.C) due to third party payments, patients demand a higher quantity of health care services per year.D) the lower the deductible, the greater is the quantity demanded of health care services per year.

Q: Albatross University, a not-for-profit, nongovernmental university, had the following transactions in 2011. 1. Tuition bills were sent amounting to $8,000,000, with 70% collected before the end of the fiscal year; tuition waivers were granted on the total amount of $400,000, and $220,000 was expected to be uncollectible. 2. Cafeteria sales, all cash, were $1,400,000. 3. Salaries and wages were paid amounting to $5,500,000, of which $370,000 was for cafeteria staff. 4. Long-term debt payments were made from general funds amounting to $800,000, of which $130,000 was for interest. 5. Equipment was purchased for the engineering department with funds previously set aside for that purpose, amounting to $180,000. Required:Prepare the journal entries for 2011 for Albatross University.

Q: The Lorenz curve is a geometric representation ofA) the profile of earnings for a ʺtypicalʺ family over time.B) the standard of living experienced by the poor in a country.C) the difference between pre-tax and post-tax income. D) the distribution of income.

Q: Wilhelman University, a not-for-profit, nongovernmental university, had the following transactions in 2011.1. Tuition bills were sent amounting to $4,000,000, with tuition waivers granted on that amount of $200,000.2. State funding was received in the amount of $2,000,000.3. The bookstore and cafeteria sales amounted to $1,600,000, and their cost of sales was $1,500,000. Assume cash sales and cash purchases for these auxiliary operations.4. Endowment income amounted to $100,000 that was restricted to chair the accounting department, and $200,000 of unrestricted income.5. Expenses were incurred and paid as follows: faculty, $3,800,000 (including faculty chair, paid in part by endowment income); Student services, $250,000; Facilities operations, $350,000; and scholarships (excluding tuition waived), $400,000.Required:Prepare the journal entries for 2011 for Wilhelman University.

Q: Which of the following has been the largest organized group of U.S. unions during the past 50 years?A) AFL-CIO B) AFL C) CIO D) Change to Win

Q: Southtown Community Hospital (SCH) shows the following balances on its trial balance at June 30, 2011, their fiscal year end. SCH is a not-for-profit, nongovernmental hospital. $260,000 cash was spent on equipment from donations restricted for that purpose.Debits:Administrative services expense 200,000Contractual allowances 1,200,000Depreciation expense 700,000Employee discounts 300,000General services expense 900,000Loss on sale of fixed assets 100,000Nursing services expense 4,000,000Resident and visiting professional services expense 3,000,000Provision for bad debts 600,000Credits:Income from investment in clinic 120,000Patient service revenues 10,000,000Pharmacy 400,000Cafeteria services 200,000Unrestricted contributions 350,000Unrestricted income from endowment funds 280,000Restricted donations for equipment purchases 500,000Required:Prepare a statement of operations for Southtown Community Hospital at June 30, 2011.

Q: Suppose there are four industries. Labor costs are 20 percent of total costs in A, 40 percent in B, 60 percent in C, and 80 percent in D. A ten percent increase in the price of labor will cause industry to reduce quantity demanded of labor by the largest proportion.A) A B) B C) C D) D