Question 1

What is a chart of accounts?

Accepted Answer

A listing of all the account titles used by a business. It typically is divided into asset accounts (cash, capital equipment, accounts receivable) and liability accounts (accounts payable, loans).

Question 2

When a $10,000 loan is paid off, the balance in the Bank Loan liability account will be ____.

Accepted Answer

A)   $10,000
B)   $0
C)   the total interest paid on the loan
D)   $10,000 plus the interest paid B

Question 3

Joe Teen has a simple business: he does odd jobs for his neighbors for $10 an hour. Joe hopes to become an accountant and would like to use a double-entry bookkeeping system for his business. What is the smallest number of accounts he needs to create?

Accepted Answer

A)   one
B)   two
C)   four
D)   eight B

Question 4

A bookkeeper mistakenly posted a transaction to the Cash account and the Medical Services account. It was supposed to be posted to the Cash account and the Product Sales account. This error will be detected with a trial balance.

Accepted Answer

A) True 
 B)False

Question 5

In double entry bookkeeping, a trial balance is prepared. The expected result is ____.

Accepted Answer

A)   a cash account balance of zero
B)   that cash and expense accounts have equal balances
C)   that credit accounts and debit accounts have equal totals
D)   that the assets and liabilities have equal totals

Question 6

Helen's Home Collection business receives a box of supplies that cost $168. The box came with a packing slip that correctly listed the contents. The packing slip was inadvertently discarded before the bookkeeper entered the transaction. Which of the following is true?

Accepted Answer

A)   Accounts Payable will be missing a $168 debit.
B)   Accounts Payable will be missing a $168 credit.
C)   The Cash account will be missing a $168 credit.
D)   Medical Supplies Expense will be missing a $168 credit.

Question 7

A computerized accounting system can ____.

Accepted Answer

A)   provide trial balances at any time
B)   provide trial balances only at the end of each accounting period
C)   perform audits for incorporated businesses
D)   perform most of the functions of an accountant

Question 8

Describe some of the challenges faced by a healthcare practice that installs a new computerized accounting system.

Accepted Answer

The answer of Describe some of the challenges faced by...

Question 9

One task of a full-time accountant at a publicly held corporation is to prepare an annual audit of the corporation's financial records.

Accepted Answer

A) True 
 B)False

Question 10

The ultimate role of an accountant is to convert financial data into economic ____________________.

Accepted Answer

The answer of The ultimate role of an accountant is...

Question 11

Manual accounting systems use records referred to as ____________________.

Accepted Answer

The answer of Manual accounting systems use records referred to...

Question 12

Bookkeeping transactions are completely automated in modern Practice Management Systems.

Accepted Answer

A) True 
 B)False

Question 13

Describe the main features of a complete Practice Management System for a healthcare provider.

Accepted Answer

The answer of Describe the main features of a complete...

Question 14

Helen's Home Collection business sends phlebotomists to patients' homes to collect blood samples. The business bought a car two years ago for $20,000. The car is an asset worth ____.

Accepted Answer

A)   $20,000
B)   $10,000
C)   $20,000 minus two years depreciation
D)   its Kelly Blue Book value

Question 15

Helen's Home Collection business borrows $25,000. This amount should appear as a debit to the ____ account.

Accepted Answer

A)   Cash
B)   Vehicles
C)   Accounts Payable
D)   Loan Liability

Question 16

In double entry accounting, interest paid on a loan is posted as a(n) ____________________.

Accepted Answer

The answer of In double entry accounting, interest paid on...

Question 17

The amount of money owed to a medical practice for a service provided today is entered as a credit in the ____________________ account.

Accepted Answer

The answer of The amount of money owed to a...

Question 18

Helen's Home Collection business makes a payment on the loan. The payment of $1000 consists of $900 principal and $100 interest. The Cash account will be ____.

Accepted Answer

A)   reduced by $900
B)   reduced by $1000
C)   increased by $900
D)   increased by $100

Question 19

Items such as prescription pads and printed patient questionnaires are capital assets.

Accepted Answer

A) True 
 B)False

Question 20

A computerized double entry accounting system will never allow the posting of a transaction in which the credits and debits do not _____________________.

Accepted Answer

The answer of A computerized double entry accounting system will...

Exam 4: Basic Accounting Concepts

What is a chart of accounts?

When a $10,000 loan is paid off, the balance in the Bank Loan liability account will be ____.

Joe Teen has a simple business: he does odd jobs for his neighbors for $10 an hour. Joe hopes to become an accountant and would like to use a double-entry bookkeeping system for his business. What is the smallest number of accounts he needs to create?

A bookkeeper mistakenly posted a transaction to the Cash account and the Medical Services account. It was supposed to be posted to the Cash account and the Product Sales account. This error will be detected with a trial balance.

In double entry bookkeeping, a trial balance is prepared. The expected result is ____.

Helen's Home Collection business receives a box of supplies that cost $168. The box came with a packing slip that correctly listed the contents. The packing slip was inadvertently discarded before the bookkeeper entered the transaction. Which of the following is true?

A computerized accounting system can ____.

Describe some of the challenges faced by a healthcare practice that installs a new computerized accounting system.

One task of a full-time accountant at a publicly held corporation is to prepare an annual audit of the corporation's financial records.

The ultimate role of an accountant is to convert financial data into economic ____________________.

Manual accounting systems use records referred to as ____________________.

Bookkeeping transactions are completely automated in modern Practice Management Systems.

Describe the main features of a complete Practice Management System for a healthcare provider.

Helen's Home Collection business sends phlebotomists to patients' homes to collect blood samples. The business bought a car two years ago for $20,000. The car is an asset worth ____.

Helen's Home Collection business borrows $25,000. This amount should appear as a debit to the ____ account.

In double entry accounting, interest paid on a loan is posted as a(n) ____________________.

The amount of money owed to a medical practice for a service provided today is entered as a credit in the ____________________ account.

Helen's Home Collection business makes a payment on the loan. The payment of $1000 consists of $900 principal and $100 interest. The Cash account will be ____.

Items such as prescription pads and printed patient questionnaires are capital assets.

A computerized double entry accounting system will never allow the posting of a transaction in which the credits and debits do not _____________________.