Deck 2: Health Care Financial Statements

Question 1

Which of the following is a basic financial statement?

A) Balance Sheet
B) Statement of Operations
C) Statement of Cash Flows
D) All of the above

Answer 1

All of the above

Question 2

Balance Sheet for a non-profit contains all of the following except:

A) Organization's assets
B) Organizations liabilities
C) Stockholders' equity
D) Cash flow

Answer 2

Stockholders' equity

Question 3

Assets are defined as:

A) Long term debt
B) Cash, investments, inventory and receivables
C) Self-insurance reserves
D) Accrued pension

Answer 3

Cash, investments, inventory and receivables

Question 4

Liabilities are defined as:

A) Financial obligations due within a year
B) Cash and cash equivalents
C) Patient accounts receivable
D) Inventories

Question 5

Net assets do not include one of the following categories:

A) Unrestricted
B) Belated
C) Temporary
D) Permanent

Question 6

A statement of operations summarizes the organization's total assets, liabilities and net assets in what time period?

A) Last day of the accounting period
B) Over a period of time
C) Last quarter
D) Annually

Question 7

Other revenue refers to all of the following except:

A) Salary and wages
B) Appropriations and grants
C) Income from investments
D) Revenue from contributions

Question 8

The statement of changes in net assets includes:

A) Account balances
B) Accounting Methods
C) Why there was a change from one year to the next in the entire net asset section of the balance sheet
D) Expense determinations

Question 9

Body of the statement of cash flows does not include:

A) Cash flows from operating activities
B) Cash flows from investing activities
C) Cash flows from financing activities
D) Current liabilities

Question 10

Cash flows from investing activities includes:

A) Purchase of plant property and equipment
B) Accounts payable
C) Accrued pension
D) Estimated third party payor settlements

Question 11

GAAP requires certain disclosure (footnote) information to give a more clear picture of the financial position.

Question 12

Balance sheet for investor owned entities presents a summary of the entity's assets, liabilities and net assets.

Question 13

Assets include accrued pension.

Question 14

Liabilities are financial obligations due within a year.

Question 15

Net assets section of a balance sheet for not for profits is analogous to the owner and equity on a for profit balance sheet.

Question 16

Notes to financial statements are called proclamations.

Question 17

Statement of cash flows discloses key noncash investing and financial transactions.

Question 18

Basic Accounting Equation is: assets =liabilities + net assets.

Question 19

Liquidity refers to long term depth.

Question 20

Assets are defined as guaranteed future economic benefits of an organization.