5. Make the accounting entries for a loan of $5,000.

ACCT Debit Credit

______________ ___________ ___________

______________ ___________ ___________

6. Make the accounting entries for receipt of a $50 copay of a medical bill of $150 and the remainder sent to the insurance company.

ACCT Debit Credit

______________ ___________ ___________

______________ ___________ ___________

______________ ___________ ___________

7. Make the accounting entries for payment of $40 for a box of copy paper purchased at an office supply store.

ACCT Debit Credit

______________ ___________ ___________

______________ ___________ ___________

______________ ___________ ___________

8. T / F The GAAP standard of materiality requires that any accounting error which will have a significant impact on financial statements be corrected.

9. T / F Items owned by the medical clinic that have a useful life over one year are found on the Balance Sheet in Current Assets.

10. T / F The Chief Financial Officer normally heads the finance department of a hospital.

11. T / F Financial accounting is used for preparation of the annual report and intended for outside user consumption.