Answers:

1. A. Auditory hallucinations

Explanation: Auditory hallucinations refer to the perception of sounds, such as voices, without any external auditory stimuli. In Mr. Johnson's case, his complaint of hearing indistinct voices that converse, commenting on his actions, and occasionally making derogatory remarks aligns with the characteristic features of auditory hallucinations. This term is commonly used to describe such perceptual experiences in psychiatric assessments.

2. D. Dementia with psychotic features

Explanation: Late-life psychosis, especially in the context of auditory hallucinations, is often associated with conditions like dementia. Dementia with psychotic features involves cognitive decline along with the presence of psychotic symptoms, such as hallucinations or delusions. Given Mr. Johnson's age and the absence of a history of psychiatric disorders, dementia with psychotic features becomes a more likely consideration.

3. D. Addressing underlying medical conditions and minimizing antipsychotic use

Explanation: In the context of late-life psychosis, particularly when associated with conditions like dementia, the first-line approach involves addressing underlying medical conditions and minimizing the use of antipsychotic medications. Antipsychotics may have side effects that can be particularly problematic in older adults, and non-pharmacological approaches, such as addressing medical comorbidities and providing supportive care, are prioritized. This approach aims to balance symptom management with minimizing potential risks associated with medication use.