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Elza [17]
3 years ago
8

A hospital estimates that, based on past experience, it will incur $5 million in malpractice claims as a result of services rend

ered in the current period. The hospital carries a malpractice insurance policy with a yearly $2 million deductible clause. The amount that should appear on its year-end financial statement as Claims Expense (Loss) should be
a) $0.b) $2 million.c) $3 million.d) $5 million.
Business
1 answer:
Gala2k [10]3 years ago
5 0

Answer:

d) $5 million.

Explanation:

The amount that should appear on the year-end financial statement should be the most probable estimate. In this case, $5 million is the most probable because this is deduced from past experience, while $2 million is a practice that should be reviewed in the light of new information.

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Answer:

When the treasury bonds are restricted to purchase it creates pressure on other securities and interest rates tend to move upwards.

Explanation:

When interest rates more upwards then cost of borrowing is increased. This increase in cost of borrowing creates pressure on the profits of private sector.  The public sector benefits from this increase in interest rates. When government is in trouble and financing is limited then these measures are used to run the economy.

3 0
3 years ago
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prem
WINSTONCH [101]

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Explanation:

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The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. The firm desi
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Answer:

time between orders 25 working days

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7 0
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In a market system, scarce goods are allocated through the operation of fixed prices that are determined by consumers and produc
anygoal [31]

Answer:

The correct answer is: market prices that are determined by consumers and producers acting in their own self-interest.

Explanation:

In a market system, the price of a good is determined by the intersection of demand for goods by consumers and the supply of goods by the producers. The price is determined at the point where the market forces of demand and supply are equal.

The producer is trying to maximize its profit while the consumer is trying to maximize its utility. Both are working for their self-interest and in this way are able to allocate scarce resources through the working of the market system.

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A norminal wage is not adjusted for inflation and real wage is adjusted for inflation

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