47. True or False: The balance sheet and income statement together provide detailed information about where a business gets its cash and how that cash is spent.
48.Carlisle Clinic, a not-for-profit organization, began 2016 with an equity balance of $1,000,000. Assuming Carlisle Clinic reported net income of $200,000 for the year ended December 31, 2015, and had no other adjustments to equity during 2015, what was Carlisle Clinicâs equity balance as of December 31, 2014?
a. $800,000
b. $1,200,000
c. $200,000
d.$1,000,000
e. Canât tell with the information provided
56.Smith Pharmaceuticals is trying to estimate the breakeven volume of sales on a newly developed drug. Which of the following would be expected to reduce the number of pills Smith would need to sell to breakeven (i.e., which would result in a lower breakeven volume) assuming everything else remains the same?
a. An increase in total fixed costs
b. A decrease in the selling price per pill
c. An increase in the variable cost per pill
d. An increase in the unit (per pill) contribution margin
e. An increase in allocated overhead (indirect) costs
57.Assume the local childrenâs hospital implements an outpatient asthma intervention to improve the health outcomes of children with asthma. As a result, the hospital sees a dramatic reduction in the number of inpatient admissions for children with asthma, but very little change in the total cost of operating the hospital. Which of the following statements describes the most likely reason for the lack of cost savings?
a. The hospitalâs cost structure primarily consists of variable costs.
b. The hospitalâs cost structure primarily consists of fixed costs.
c. The hospitalâs cost structure consists of an equal mix of variable and fixed costs.
d. The hospital reduced its capacity (i.e., downsized) following the drop in admissions.
e. The hospital has a very high variable cost per admission
47. True or False: The balance sheet and income statement together provide detailed information about where a business gets its cash and how that cash is spent.
48.Carlisle Clinic, a not-for-profit organization, began 2016 with an equity balance of $1,000,000. Assuming Carlisle Clinic reported net income of $200,000 for the year ended December 31, 2015, and had no other adjustments to equity during 2015, what was Carlisle Clinicâs equity balance as of December 31, 2014?
a. $800,000
b. $1,200,000
c. $200,000
d.$1,000,000
e. Canât tell with the information provided
56.Smith Pharmaceuticals is trying to estimate the breakeven volume of sales on a newly developed drug. Which of the following would be expected to reduce the number of pills Smith would need to sell to breakeven (i.e., which would result in a lower breakeven volume) assuming everything else remains the same?
a. An increase in total fixed costs
b. A decrease in the selling price per pill
c. An increase in the variable cost per pill
d. An increase in the unit (per pill) contribution margin
e. An increase in allocated overhead (indirect) costs
57.Assume the local childrenâs hospital implements an outpatient asthma intervention to improve the health outcomes of children with asthma. As a result, the hospital sees a dramatic reduction in the number of inpatient admissions for children with asthma, but very little change in the total cost of operating the hospital. Which of the following statements describes the most likely reason for the lack of cost savings?
a. The hospitalâs cost structure primarily consists of variable costs.
b. The hospitalâs cost structure primarily consists of fixed costs.
c. The hospitalâs cost structure consists of an equal mix of variable and fixed costs.
d. The hospital reduced its capacity (i.e., downsized) following the drop in admissions.
e. The hospital has a very high variable cost per admission
