final

Question 1

The “near term”, “short-term” or “current” in accounting means [ ] or less

Answer 1

12 months

Question 2

Viability is measured by [ans1] and [ans2]. Pick 2

Answer 2

solvency and liquidity

Question 3

Whether for profit or not-for-profit, health organizations need profits (T/F)

Answer 3

true

Question 4

There is always a trade off between profit and risk (T/F)

Answer 4

true

Question 5

The two overriding goals of financial management are [ans1] and [ans2]. Pick 2

Answer 5

viability and profitability

Question 6

The difference between a providers posted charge for service and the amount agreed to by the provider and third party payer is a:

Answer 6

contractual allowance

Question 7

Charity Care and Bad Debt Expense are the same in Accrual Accounting (T/F)

Answer 7

false

Question 8

Charges are the same as revenues in accounting (T/F)

Answer 8

false

Question 9

all patients pay their financial obligations

Answer 9

false

Question 10

The first item listed on healthcare financial statements and reflects the adjustments of charity care and contractual adjustments is known as

Answer 10

net patient services revenue

Question 11

going concern

Answer 11

statements are prepared based on assumption of longevity. If that is not likely the case then it must be disclosed

Question 12

conservatism

Answer 12

Consideration should be given to risks the organization faces

Question 13

matching

Answer 13

Expenses should be recorded in the same period as the revenues they were responsible for generating

Question 14

cost

Answer 14

the value of what was given up to acquire the item

Question 15

objective evidence

Answer 15

Based on evidence that reasonable individuals would agree upon

Question 16

materiality

Answer 16

If an individual would make a different decision based on the incorrect information resulting in an error

Question 17

consistency

Answer 17

Use of the same accounting method from period to period

Question 18

full disclosure

Answer 18

Reports should disclose any information needed to ensure that they are fair representations

Question 19

tangiable assets

Answer 19

Resources owned by the organization that have physical form

Question 20

Owners equity and net assets are the same thing in accounting terminology (T/F)

Answer 20

true

Question 21

the fundamental accounting equation is…

Answer 21

assets = liabities + equity

Question 22

liabilities

Answer 22

obligations of the organization to outside creditors

Question 23

what are the three types of inflation?

Answer 23

demand inflation
printing money
cost push

Question 24

Inflation ___________________ the value of money (the dollar)

Answer 24

decreases

Question 25

What are three causes of Demand Inflation?

Answer 25

higher wages lower unemployment low interest rates

Question 26

It takes ___________ dollars to purchase the same item during times of inflation

Answer 26

more

Question 27

Non-profits need to disclose how liquid their organization is. (T/F)

Answer 27

true

Question 28

Nominal accounts zero their balances prior to the next reporting period. (T/F)

Answer 28

true

Question 29

What is the main determinant between an Investing vs. a Financing decision for an organization?

Answer 29

interest expense

Question 30

Retained earnings is "cash on hand" for an organization to reinvest back into operations. (T/F)

Answer 30

false

Question 31

Net Patient Services Revenue is Gross Revenue minus which deductions?

Answer 31

Charity Adjustments and Contractual Adjustments

Question 32

What are the three sections of the Statement of Cash Flows?

Answer 32

financing investing operating

Question 33

what types of accounts are real accounts

Answer 33

assets liability equity

Question 34

Net Assets (equity) is the cash an organization has to invest for its future. (T/F)

Answer 34

false

Question 35

Using the accrual method of accounting will require a Statement of Cash flows (T/F)

Answer 35

true

Question 36

GAAP requires the use of historical valuation for which types of assets.

Answer 36

eqipment plant property

Question 37

One can use different valuation methods for different assets of the organization. (T/F)

Answer 37

true

Question 38

Equity is the amount of money I have in the bank (cash) after I account for my assets and liabilities.

Answer 38

false

Question 39

The strength of historical cost valuation is that it is objective and verifiable. (T/F)

Answer 39

true

Question 40

As an accountant putting forward financial statements; they should follow which three guiding principles:

Answer 40

full disclosure GAAP rules federal/state regulations

Question 41

Historical cost is adjusted each year based on the wear and tear of an item. This adjustment is shown in which account?

Answer 41

depreciation

Question 42

GAAP requires assets such as Property, Plant and Equipment to be based on what type of cost valuation method?

Answer 42

historical cost

Question 43

Using an organization's cash funds to purchase new equipment for the business is an example of:

Answer 43

capitalization

Question 44

The accounting equation must always remain in balance. (T/F)

Answer 44

true

Question 45

All elements of a financial even are known as:

Answer 45

transaction

Question 46

Cash is increased by a credit and decreased by a debit. (T/F)

Answer 46

false

Question 47

Double entry means that it is not possible to change one side of the accounting equation without changing the other. (T/F)

Answer 47

true

Question 48

Capitalization must be paid for in cash (T/F)

Answer 48

true

Question 49

Financial statements are the responsibility of the auditor or CPA (T/F)

Answer 49

false

Question 50

An auditor reviews all documents to determine accuracy (T/F)

Answer 50

false

Question 51

No matter which depreciation schedule is used the journal entries fro the initial purchase will remain the same (T/F)

Answer 51

true

Question 52

The historical cost of an item less the accumulated depreciation of the item is known as

Answer 52

book value

Question 53

Depreciation expense and accumulated depreciation are the same types of accounts in accounting (T/F)

Answer 53

false

Question 54

Depreciation expense gets zeroed out after a financial reporting period for an organization (T/F)

Answer 54

true

Question 55

Delaying or accelerating payments will not impact expenses if using accrual-based accounting

Answer 55

true

Question 56

Real accounts are zeroed out after the reporting year has ended (T/F)

Answer 56

false

Question 57

Which statement is the best evaluator of an organization's current financial status

Answer 57

income statement

Question 58

It is the accountant's responsibility to make sure a future investor understands the financial statements of the organization. (T/F)

Answer 58

False

Question 59

The idea that one will not be able to replace inventory items for lower costs because of inflation is the basis of which inventory costing method?

Answer 59

LIFO