A+ Answers of the following Questions

1. According to the UNDP statistics (2004) the per capita income of Ecuador was about __________ per year. 
A. $2,500 
B. $3,500 
C. $4,500 
D. $5,500 

2. All of the following are true about distance learning EXCEPT: 
A. can help narrow the techno-economic gap between the developed and developing nations.

b is affordable only in First World countries that have highly advanced technologies. 
C. overcomes geographic barriers to allow face-to-face communication between students and tea

3. According to your textbook, scientists are discovering that __________ is(are) currently a significant environmental problem especially in the coutries of Bangladesh, India, China, and other Asian countries. 
A. laser technologies 
B. cyclones 
C. underground earthquakes 
D. arsenic poisioning 

Question: Identifying accrual basis revenues
According to the revenue principle, revenues should be recognized when they are earned, which happens when the company performs acts promised to the customer. For most businesses this condition is met at the point of delivery of goods or services. The following transactions occurred in september 2010:
a. A customer pays $10 cash for 10 song files from Apple's iTunes store. Answer from Apple's standpoint.
b. Home depot provides a carpet installation for $2,000 cash. A comparable installation from other companies cost $3000.
c. AT&T is schedule to install digital cable at 1,000 Austin area homes next week. The installation charge is $100 per home. The terms require payment within 30 days of installation. Answer from AT&T standpoint.
d. AT&T completes the installation describe in (c). Answer from AT&T standpoint
e. AT&T receives payment from customers for the installations describe in (c). Answer from AT&T standpoint
f. A customer purchases a ticket from American Airlines in september for $500 cash to travel in December. Answer from American Airlines standpoint

Required:
For each transactions, if revenue is to be recognized in September, indicate the amount. If revenue is not recognized in september, explain why.
Identifying Accrual basis Expenses
Under Accrual basis accounting are recognized when incurred. The following transactions occurred in January 2010:
a. American Express pays its salespersons $3,500 in commissions related to December financial advisory services sales. Answer from American Express's standpoint
b. On January 31, American Express determines that it will pay its salespersons $4,200 in commissions related to January sales. The payment will be made in Early February. Answer from American Express's standpoint
c. The city of Omaha hires Waste Management, Inc., to provide trash collection services beginning in January. The city pays $7.2 million for the entire year. Answer from the city's
standpoint
d. The University of Florida pays $10,000 in advance for refundable airline tickets to fly the baseball team to a tournament in California. The first game will be played in March. Answer from the University's standpoint
e. A Houston Community College employee works eight hours, at $15 per hour, on January 31; payday is not until February 3. Answer from College's point of view
f. Wang Company paid $3,600 for a fire insurance policy on January 1. The policy covers 12 months beginning on January 1. Answer from Wang's standpoint
g. Ziegler Company, a farm equipment company, receives a phone bill for $230 of january calls. The bill has not been paid to date. 
required:
For each transactions, if an expense os to be recognized in January, indicate the amount. If an expense is not to be recognized in January, indicate why.

1. (TCO 8) Which of the following is not an option under Medicare Advantage? (Points : 3) 
Medicare special needs plans
Long-term care coverage
Private fee-for-service plans
Medical savings accounts
Preferred provider organizations


2. (TCO 8) Which of the following is true with respect to Medicare Prescription Drug Coverage? (Points : 3) 
It may be offered as part of a Medicare Advantage Plan or through a stand-alone Prescription Drug Plan.
Stand-alone plans must offer either a defined standard benefit or an alternative that is actuarially equivalent.
The coverage may contain a “donut hole,” or layer in which the individual is responsible for 100% of his or her drug costs.
Plans vary in their premiums, deductibles and copayments, and formularies.
All of the above. 


3. (TCO 8) A major medical policy: (Points : 3) 
is designed to cover the normal medical expenses of the insured.
is more expensive than a normal hospitalization policy because the maximum amount payable is much greater.
is designed to protect against losses which are catastrophic.
violates the principles of risk management by protecting against losses which ought to be assumed.
none of the above.

1. (TCO 8) When home care benefits are included in a long-term care insurance policy: (Points : 3) 
home care benefits are usually subject to a requirement that the insured was previously confined in a skilled nursing facility.
home care benefits are provided only if the insured has been hospitalized.
payments for home care reduce nursing home care on a dollar-for-dollar basis.
coverage applies only to home care workers certified by Medicare.
none of the above.


2. (TCO 8) Which of the following is not a characteristic of Medicare Supplement policies? (Points : 3) 
Policies may exclude preexisting conditions.
Policies may impose a waiting period on preexisting conditions.
Policies must be guaranteed renewable.
Coverage for Medicare cost-sharing features must change automatically with Medicare deductibles and coinsurance.
None of the above


3. (TCO 8) When a physician refuses to accept assignment under Medicare: (Points : 3) 
he or she is barred from participating in Medicare for two years.
the beneficiary may have additional out-of-pocket expenses.
there is no limit on the amount that the physician may charge a Medicare beneficiary.
neither the physician nor the beneficiary can collect from Medicare.
more than one of the above apply.

1. (TCO 8) Hospitalization policies do not usually provide coverage for: (Points : 3) 
hospital room and board.
operating room charges.
maternity benefits.
physician's charges.
X-ray and laboratory charges.


2. (TCO 8) Disability income insurance: (Points : 3) 
is less important than life insurance because the probability of death at most ages is greater.
is sold only on a group basis.
is often overlooked in income protection planning.
should be purchased with as short a waiting period as possible.
more than one of the above.

3. (TCO 8) A major medical policy: (Points : 3) 
is designed to cover the normal medical expenses of the insured.
is more expensive than a normal hospitalization policy because the maximum amount payable is much greater.
is designed to protect against losses which are catastrophic.
violates the principles of risk management by protecting against losses which ought to be assumed.
none of the above.