Question 1

Recording of transactions is to occur each quarter.

Accepted Answer

A) True 
 B)False  False

Question 2

The statement of operations answers the question of how to record transactions.

Accepted Answer

A) True 
 B)False  False

Question 3

Under accrual accounting, revenues are recognized when cash is received.

Accepted Answer

A) True 
 B)False  False

Question 4

When cash is paid out, expense is recognized where no resources were used.

Accepted Answer

A) True 
 B)False

Question 5

Statement of Operations includes:

Accepted Answer

A)  Operating Expenses 
B)  Increase in unrestricted net assets 
C)  a & b 
D)  None of the above 
A)  Operating Expenses 
B)  Increase in unrestricted net assets 
C)  a & b 
D)  None of the above

Question 6

Electronic health record has financial reporting value.

Accepted Answer

A) True 
 B)False

Question 7

Recording transactions assists in:

Accepted Answer

A)  Accuracy of financial acts 
B)  Summarizing accounts 
C)  Ease of tracking financial transactions 
D)  All of the above 
A)  Accuracy of financial acts 
B)  Summarizing accounts 
C)  Ease of tracking financial transactions 
D)  All of the above

Question 8

Transactions summarized by account are called:

Accepted Answer

A)  Journal 
B)  Ledger 
C)  Balance 
D)  Asset 
A)  Journal 
B)  Ledger 
C)  Balance 
D)  Asset

Question 9

Transactions are recorded chronologically in a journal.

Accepted Answer

A) True 
 B)False

Question 10

A statement of cash flows includes:

Accepted Answer

A)  Cash flows from operating activities 
B)  Cash flows from investing activities 
C)  Cash flows from financing activities 
D)  All of the above 
A)  Cash flows from operating activities 
B)  Cash flows from investing activities 
C)  Cash flows from financing activities 
D)  All of the above

Question 11

Contra-asset is an asset that when increased, decreases the value of a related asset on the books.

Accepted Answer

A) True 
 B)False

Question 12

A statement of cash flows provides information about how much revenue e is generated and amount of resources used.

Accepted Answer

A) True 
 B)False

Question 13

Functions of an internal audit department include:

Accepted Answer

A)  Resources used to generate revenues 
B)  Ensuring that hospitals comply with their financial record keeping 
C)  Reporting and recording of revenues and expenses 
D)  b & c 
A)  Resources used to generate revenues 
B)  Ensuring that hospitals comply with their financial record keeping 
C)  Reporting and recording of revenues and expenses 
D)  b & c

Question 14

To develop financial statements, transactions

Accepted Answer

A)  Must be on a cash basis 
B)  Are recorded according to staff availability 
C)  Focus only on assets 
D)  Have been analyzed and recorded 
A)  Must be on a cash basis 
B)  Are recorded according to staff availability 
C)  Focus only on assets 
D)  Have been analyzed and recorded

Question 15

In the accrual accounting method:

Accepted Answer

A)  Revenues are recognized when cash is received 
B)  Expenses are recognized when cash is paid out 
C)  Revenues are recognized when revenues are earned 
D)  All of the above 
A)  Revenues are recognized when cash is received 
B)  Expenses are recognized when cash is paid out 
C)  Revenues are recognized when revenues are earned 
D)  All of the above

Question 16

A balance sheet highlights assets, liabilities and resources used.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a standard accounting method used in health care?

Accepted Answer

A)  Accrual 
B)  Cash 
C)  Expense 
D)  Asset 
A)  Accrual 
B)  Cash 
C)  Expense 
D)  Asset

Question 18

The "book" refers to transactions

Accepted Answer

A)  Only done by computer entry 
B)  Journal recorded chronologically 
C)  Current balance in each account 
D)  Current ratio 
A)  Only done by computer entry 
B)  Journal recorded chronologically 
C)  Current balance in each account 
D)  Current ratio

Question 19

In health care the cash accounting method is used.

Accepted Answer

A) True 
 B)False

Question 20

Rules for recording transactions do not include:

Accepted Answer

A)  Increase in revenues, gains or other support account when earnings are received. 
B)  After each transaction, the fundamental account equation must be in balance. 
C)  An accounting method when cash was received or expended. 
D)  Increase an expense account when an asset is used. 
A)  Increase in revenues, gains or other support account when earnings are received. 
B)  After each transaction, the fundamental account equation must be in balance. 
C)  An accounting method when cash was received or expended. 
D)  Increase an expense account when an asset is used.

Recording of transactions is to occur each quarter.

The statement of operations answers the question of how to record transactions.

Under accrual accounting, revenues are recognized when cash is received.

When cash is paid out, expense is recognized where no resources were used.

Statement of Operations includes:

Electronic health record has financial reporting value.

Recording transactions assists in:

Transactions summarized by account are called:

Transactions are recorded chronologically in a journal.

A statement of cash flows includes:

Contra-asset is an asset that when increased, decreases the value of a related asset on the books.

A statement of cash flows provides information about how much revenue e is generated and amount of resources used.

Functions of an internal audit department include:

To develop financial statements, transactions

In the accrual accounting method:

A balance sheet highlights assets, liabilities and resources used.

Which of the following is a standard accounting method used in health care?

The "book" refers to transactions

In health care the cash accounting method is used.

Rules for recording transactions do not include:

The Context of Health Care Financial Management

Health Care Financial Statements

Financial Statement Analysis

Working Capital Management

The Time Value of Money

The Investment Decision

Capital Financing for Health Care Providers

Using Cost Information to Make Special Decisions

Budgeting

Responsibility Accounting

Provider Costfinding Methods

Provider Payment Systems

Filters

Exam 3: Principles and Practices of Health Care Accounting

Recording of transactions is to occur each quarter.

The statement of operations answers the question of how to record transactions.

Under accrual accounting, revenues are recognized when cash is received.

When cash is paid out, expense is recognized where no resources were used.

Statement of Operations includes:

Electronic health record has financial reporting value.

Recording transactions assists in:

Transactions summarized by account are called:

Transactions are recorded chronologically in a journal.

A statement of cash flows includes:

Contra-asset is an asset that when increased, decreases the value of a related asset on the books.

A statement of cash flows provides information about how much revenue e is generated and amount of resources used.

Functions of an internal audit department include:

To develop financial statements, transactions

In the accrual accounting method:

A balance sheet highlights assets, liabilities and resources used.

Which of the following is a standard accounting method used in health care?

The "book" refers to transactions

In health care the cash accounting method is used.

Rules for recording transactions do not include:

The Context of Health Care Financial Management

Health Care Financial Statements

Financial Statement Analysis

Working Capital Management

The Time Value of Money

The Investment Decision

Capital Financing for Health Care Providers

Using Cost Information to Make Special Decisions

Budgeting

Responsibility Accounting

Provider Costfinding Methods

Provider Payment Systems

Filters