Which of the following is NOT considered an advantage of organizing as a C corporation: Question 1 (5 points)

Which of the following is NOT considered an advantage of organizing as a C corporation:
Question 1 (5 points)

Which of the following is NOT considered an advantage of organizing as a C corporation:
a) Easy to transfer ownership through shares of stock
b) Owners have limited liability
c) Less costly and less time consuming to set-up relative to other forms of organization
d) Unlimited life of company that continues in existence after original owners die or leave the company.

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Question 2 (5 points)
Which of the following does not appear on the balance sheet?
a) Accumulated Depreciation
b) Net Income
c) Liabilities
d) Assets

Question 3 (5 points)
Which of the following is FALSE regarding capitated payment third-party arrangements:
a) Under a profit (CVP) analysis, there is no direct linkage between volume of services provided and revenues
b) Providers have an incentive to reduce costs and reduce utilization
c) Providers have an incentive to set higher charge rates to increase revenues
d) Revenue associated with capitated contracts is often called premium revenue rather than patient service revenue

Question 4 (5 points)
Which of the following is a FALSE statement regarding accrual accounting?
a) The revenue recognition principle requires the revenue to be recognized in the period when they are realized and earned. This is the period in which the service is rendered.
b) An advantage is that there are no complex accounting rules and it is closely aligned to accounting for tax purposes
c) The economic event that creates the financial transaction, rather than the transaction itself, provides the basis for the accounting entry.
d) Implementation of the matching principle dealing with expenses creates a problem with long-lived assets such as buildings and equipment.

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