1. The organization purchased a $12,000 of pharmaceuticals which is which it routinely uses in its treatment of patients. These drugs have been delivered by the vendor and stored on the shelves of the organization for future use, however payment to the vendor for these has not been made.

Your Answer for the correct account to DEBIT: ________

A) Pharmacy Expense B) Pharmacy Inventory C) Pharmacy Equipment D) Accounts Payable

2. If you see the account Goodwill on an organizations Balance Sheet, what is the most likely thing you can assume about the activities of that organization?

Your answer: ________

1. The organization is focused on providing exceptional customer service.
2. The organization is a not-for-profit and provides goods and services for the benefit of the community.
3. The organization if a not-for-proit and relies on the goodwill of the community as evidenced by the donations that it receives.

The organization is growing its business by acquiring other organizations

3.Assume that the healthcare organization in the question above uses an accelerated method of depreciation. What could you say about the amount of depreciation taken in the third year using this method compared to the depreciation if they used the straight-line method?

Your answer: ________

1. The depreciation would be higher
2. The depreciation would be lower
3. The depreciation would be the same
4. There is not enough information provided to know this answer.

4.Assume a healthcare organization uses the straight-line method of depreciation, and it DOES NOT use salvage value in its calculations. What is the depreciation that it would take in the third year of an asset that was purchased for $30,000, and costs $5,000 to install, and the asset was expected to have a life of 5 years, after which it could be sold for $6,000.

Your letter answer for the most likely amount of depreciation: _______

1. $4,800
2. $5,800
3. $6,000
4. $7,000

5.Wages for the organizations employees earned and recorded last month are paid in the current month in the amount of $25,000.

Your Answer for the correct account to DEBIT: ________

1. Cash
2. Accounts Payable
3. Salaries Payable
4. Salary Expense

6.The organization purchased a piece of equipment that cost $25,000 in exchange for a payment of cash.

Your Answer for the correct account to DEBIT: ________

1. Cash
2. Accounts Payable
3. Accounts Receivable
4. Equipment