52.Which of the follow statements best describes the contribution margin?

a. The contribution margin is defined as fixed costs minus variable costs.

b. The contribution margin is the dollar amount of each unit of revenue that is available first to cover fixed costs and then to contribute to profit.

c. The contribution margin is defined as revenues minus fixed costs.

d. The total contribution margin is defined as the contribution margin multiplied by total revenues.

e. The total contribution margin is defined as the contribution margin multiplied by total costs.True or False: Fixed costs are those costs that are known (fixed) regardless of the relevant range, while variable costs are those costs that are known only within the relevant range.

49.Which of the following statements about managerial accounting is incorrect?

a. Managerial accounting information is used primarily by managers within theorganization.

b. *b. Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles [GAAP]).

c. Managerial accounting information is primarily forward looking, as opposed to focusing on historical information.

d. Managerial accounting information is used both at the organizational level and at the subunit (department and lower) level.

e. Budgets are an important managerial accounting tool.

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 Clinics equity balance as of December 31, 2014?

a. $800,000

b. $1,200,000

c. $200,000

d. $1,000,000

e. Cant tell with the information provided

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.

44.A nonendowment contribution made to a not-for-profit healthcare organization that the donor specifies is to be used only for the provision of charity care would most likely be classified as:

a. Unrestricted

b. Temporarily restricted

c. Forever restricted

d. Board designated

e. A liability

45.Which of the following statements about the balance sheet is most correct?

a. The balance sheet provides information about the financial position of an organization as of a moment in time.

b. The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization.

c. The balance sheet is affected by changes in the net income of the organization.

d. Statements a. and c. are both correct.

e. Statements a., b., and c. are all correct.

6.Which of the following measures is least useful for assessing a healthcare organizations financial viability?

a. Operating income from the income statement

b. Cash flow from operations from the statement of cash flows

c. Net increase (decrease) in cash from the statement of cash flows

d. Net income from the income statement

e. Net working capital from the balance sheet