A Hospital Accountant Performs a Trial Balance and Notes a Discrepancy

question 19

Multiple Choice

A hospital accountant performs a trial balance and notes a discrepancy of over $600,000 due to payments to FlyByNight Suppliers. The accountant tries to talk with the purchasing clerk who approved the payments, but she has been absent from work for eight days. The accountant should ____.

• A) call the FBI
• B) call the local district attorney
• C) recommend a forensic audit
• D) immediately inform the governing board

Gain an understanding of decision-making under uncertainty and assess risk.

Understand and apply the concept of expected value in the context of business decisions.

Learn the process of calculating the expected value of perfect information (EVPI) for better decision-making.

Distinguish between different types of probabilities (prior, joint, marginal, posterior) in the context of decision analysis.

---

Definitions:

Financial Capital

The monetary resources and assets owned or available to an individual, organization, or country for use in production or investing.

Crowdfunding Model

A method of raising capital through the collective effort of friends, family, customers, and individual investors.

Video Pitch

A brief presentation, delivered via video, that outlines an idea or business proposal to potential investors or partners.

Formal Proposal

A detailed and structured plan or suggestion, typically presented in writing, aiming to convince others of a particular course of action.