Question : Multiple Choice Questions 165. The primary purpose for using an inventory flow : 1229802

Multiple Choice Questions

165. The primary purpose for using an inventory flow assumption is to:
A. Parallel the physical flow of units of merchandise.
B. Offset against revenue an appropriate cost of goods sold.
C. Minimize income taxes.
D. Maximize the reported amount of net income.

166. Ace Auto Supply uses a perpetual inventory record. On March 10, the company sells two Shelby four-barrel carburetors. Immediately prior to this sale, the perpetual inventory records indicate three of these carburetors on hand, as shown below:

With respect to the sale on March 10: (More than one of the following answers may be correct.)
A. If the average cost method is used, the cost of goods sold is $460.
B. If these carburetors have identification numbers, Ace must use the specific identification method in determining the cost of goods sold.
C. If the company uses LIFO, the cost of goods sold will be $15 higher than if it were using FIFO.
D. If the company uses LIFO, the carburetor remaining in inventory after the sales will be assumed to have cost $220.

167. T-Shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices were: $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.
A. $13,700 (FIFO) and $16,000 (LIFO).
B. $8,300 (FIFO) and $6,000 (LIFO).
C. $16,000 (FIFO) and $13,700 (LIFO).
D. $6,000 (FIFO) and $8,300 (LIFO).

168. Trent Department Store uses a perpetual inventory system but adjusts its inventory records at year-end to reflect the results of a complete physical inventory. In the physical inventory taken at the ends of 2010 and 2011, Trent’s employees failed to count the merchandise in the store’s window display. The cost of this merchandise amounted to $13,000 at the end of 2010, and $19,000 at the end of 2011. As a result of these errors, the cost of goods sold for 2005 will be:
A. Understated by $19,000.
B. Overstated by $6,000.
C. Understated by $6,000.
D. None of the above.

169. In July 2011, the accountant for LBJ Imports is in the process of preparing financial statements for the quarter ended June 30, 2011. The physical inventory, however, was last taken on June 5 and the accountant must establish the approximate cost at June 30 from the following data:

The gross profit on sales has consistently averaged 40% of sales. Using the gross profit method, compute the approximate inventory cost at June 30, 2011.
A. $420,000.
B. $880,000.
C. $480,000.
D. $1,360,000.

170. Allied Products maintains a large inventory. The company has used the LIFO inventory method for many years, during which the purchase costs of its products have risen substantially. (More than one of the following answers may be correct.)
A. Allied would have reported a higher net income in past years if it had been using the average cost method.
B. Allied’s financial statements imply a lower inventory turnover rate than they would if the company were using FIFO.
C. If Allied were to let its inventory fall far below normal levels, the company’s gross profit rate would decline.
D. Allied would have paid more income taxes in past years if it had been using the FIFO method.

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July 1, 2023

Assignment 1: LASA 2— Corporate Compliance

You are a corporate compliance officer for a hospital. You are also a feature writer for The Medical Reporter, an online health magazine. The editor asks you to write an 8-10 page feature story about the steps you should take when fraud and abuse cases are reported to a facility. This is very timely as you recently received a call on your “hotline” regarding a potential fraud and abuse issue. The caller indicated that Dr. Greedy was billing for services that had not been provided. You are in danger of losing reimbursement for Medicare and Medicaid programs if this behavior is not stopped. Your feature should address the ethical and moral components that healthcare providers and healthcare facilities face with fraud and abuse issues. Your research should include the following aspects:

I. How to conduct an investigation. It should include the following elements:

a. Reviewing the initial complaint: What are the items you should look for in a compliant to determine validity?

b. Notifying the appropriate upper management of the complaint unless they are implicated in the complaint: What are the steps to take to determine who is involved?

c. Obtaining additional information as necessary and developing a plan for the investigation: What other items are important to the investigation?

d. Conducting interviews with staff, residents and/or management: Delineate the types of questions to ask in the interview.

e. Determining if the allegations are substantiated or unsubstantiated: Identify criteria to determine if substantiated or unsubstantiated.

II. How to develop a correction action plan. The plan may suggest:

a. A recommendation for a subsequent audit or follow-up to the complaint and determination of when this is necessary.

b. A recommendation to refund any overpayments to federal government, insurance company or individual payer and when that may be the best course of action.

By Saturday, August 24, 2013, deliver your assignment to the M5: Assignment 1 Dropbox.

Use the following file naming convention: LastnameFirstInitial_M5_A1.doc.

Assignment 1 Grading Criteria	Maximum Points
Discussed the process for reviewing the initial healthcare fraud and abuse complaint and the items to look for to determine validity.	36
Explained the steps to take to determine who is involved in the complaint.	32
Discussed how to obtain additional information to develop a plan for the investigation and the items, which would be important to the investigation.	32
Explained how to conduct interviews with staff, residents and/or management and the types of questions to ask in the interview.	32
Identified the criteria to determine if the allegations are substantiated or unsubstantiated.	32
Explained how to determine when a recommendation for a subsequent audit or follow-up to the complaint is necessary.	36
Discussed the best course of action when a recommendation to refund any overpayments to federal government, insurance company or individual payer is warranted.	36
Written Components: Style (8 points): Tone, audience, and word choice Organization (16 points): Introduction, transitions, and conclusion Usage and Mechanics (16 points): Grammar, spelling, and sentence structure APA Elements (24 points): In text citations and references, paraphrasing, and appropriate use of quotations and other elements of style	64
Total:	300