1. Dr. Tier owns a non-profit agency in the local community that provides food, shelter, and counseling for disadvantaged youth and families. At the end of the year, the non-profit agency's difference between the total assets and liabilities is $300,000. Based on the legal structure of the non-profit agency, what terminology will be used on the balance sheet?

   a. Fund balance

   b. Capital stock

   c. Net assets

   d. Owner's equity

2. Dr. Lang is figuring out the annual depreciation for the dental equipment at the office to see what may need to be replaced next year. Three dental chairs cost a total of $9,000, have a useful life of 5 years, and the salvage value per chair is $1000. What is the annual depreciation of one dental chair for the first year?

   a. $400

   b. $1600

   c. $2100

   
   

   d. $2500

3. Dr. Laqourt is reviewing his balance sheet at the end of the year. Ten percent of the patients did not pay anything on their medical bills. The number of unpaid patients will impact the accounts receivable. What is this an example of?

   a. Inventory

   b. Capital asset

   c. Contra account

   d. Prepaid expense

4. Dr. Vergo is figuring out the annual depreciation for the medical equipment in the office. The x-ray machine cost is $4500, it has a useful life of 5 years, and the salvage value is $650. How would the debit and credit be shown for the depreciation expense and accumulated depreciation for the first year?

   Account Number	Description	Debit	Credit
   	Depreciation Expense
   	Accumulated Depreciation

   a. $250 Debit and $250 Credit

   b. $320 Debit and $320 Credit

   c. $770 Debit and $770 Credit

   
   

   d. $800 Debit and $800 Credit

5. Which of the following liabilities would be a non-current liability?

   a. Accounts payable

   b. Medical equipment

   c. Medical supplies

   d. Utility bills

6. Dr. Kelly has a podiatry practice with total assets valued at $900,000. The liabilities of the business total $500,000. What is Dr. Kelly's podiatry practice's net worth?

   a. $320,000

   b. $390,000

   c. $400,000

   
   

   d. $420,000

7. Which of the following would not be an intangible asset?

   a. Trademark

   b. Equipment

   c. Copyright

   d. Patients