The Audit Significance of the Financial Ratio, Fixed Asset Turnover

question 36

Multiple Choice

The audit significance of the financial ratio, fixed asset turnover, is:

• A) this financial ratio provides a reasonableness test of the entity's proportion of equity that may be compared with prior years' experience or industry data.
• B) an unexpected increase or decrease in the depreciation expense as a percent of depreciable assets may indicate an error in calculating depreciation.
• C) an unexpected increase in this financial ratio may indicate the failure to record or capitalize depreciable assets.
• D) this financial ratio provides a test of the entity's ability to generate earnings to cover the cost of service debt.
• E) this financial ratio provides a reasonableness test of shareholders' equity given the company's earnings and financing structure.

Know the process and importance of reviewing medical necessity guidelines and their role in coding.

Understand the ethical considerations in coding, including avoiding upcoding and accurately capturing all relevant procedures and diagnoses.

Understand the importance of acknowledging family strengths and efforts in healthcare settings.

Recognize the interventive potential of reflective questioning in family dynamics and problem-solving.

---

Definitions:

Codified

The transformation of laws or regulations into a systematic code.

Criminal Charges

Formal accusations made by a governmental authority asserting that an individual has committed a crime.

Arrested

The act of detaining a person in legal custody, typically following suspicion of their involvement in criminal activity.

People

Human beings collectively, often referred to in the context of social, legal, or demographic discussions.