1) A pharmacy's income statement reports $3,250,000 in earnings for a fiscal year and $2,975,000 in total expenses for the same fiscal year.

What is the net income for that business during the specified fiscal year?

a) $275,000

b) $6,225,000

c) $3,250,000

2) Which of the following is a potentially unethical outcome of budgetary padding?

a) Budget planners allowing for employees to have participative budgeting.

b) Budget planners preparing for potential unforeseen negative events

c) Budget planners preparing for eventual cuts in funding or revenue

d) Budget planners providing padding to increase their performance bonus