Question 4

Included on the Balance Sheet are:

		asset, liability, fund balance, revenue, and expense accounts.
		asset, revenue, and expense accounts.
		revenue and expense accounts.
		asset, liability, and fund balance accounts.

Question 5

Which of the following statements is true regarding the cash basis of accounting?

		It is required of all health care entities.
		Expenses are reported in the same period as the revenues to which they relate.
		Revenues are reported in the period in which they are earned.
		Revenues are reported in the period in which cash is received, and expenses are reported when cash is paid out.

Question 6

Which financial statement is prepared first?

		Statement of Changes in Fund Balance
		Balance Sheet
		Income Statement
		Statement of Cash Flows

Question 7

The following list of accounts is provided by an entity as of December 31, 2016.

Accounts Payable	$16,500
Accounts Receivable	2,300
Bonds Payable, due in 2030	49,000
Building	78,010
Cash	11,680
Equipment	6,500
Fund Balance	57,870
Land	24,100
Patient Service Revenue	14,600
Rent Expense	1,200
Salaries Expense	5,600
Supplies	780
Utilities Expense	350

Calculate total current assets.

		$21,260
		$14,760
		$123,370
		$13,980

Question 8

Which of the following statements is consistent with the accrual basis of accounting?

		Revenues are recorded after expenses.
		Expenses are recorded when cash is paid out.
		Revenues are recorded when earned.
		Revenues are recorded when cash is received.

Question 9

A for-profit hospital reports net worth of $240,000 on December 31, 2016, and net worth of $280,000 on December 31, 2017. The hospital paid dividends of $10,000. What was the organization's net income for the period ended December 31, 2017?

		$10,000
		$50,000
		$40,000
		$30,000

Question 10

Which of the following provides a summary of cash receipts and cash payments for a period of time, such as a month or a year?

		Statement of Changes in Fund Balance
		Statement of Cash Flows
		Balance Sheet
		Income Statement

Question 11

Partial financial information for Cleverly Hospital for the previous two years is provided below.

Date	Total Liabilities	Total Net Worth
12/31/2016	$140,000	$110,000
12/31/2017	$160,000	$100,000

Compute the percentage change in Total Assets from year 2016 to 2017.

		14.29%
		100.00%
		4.00%
		-9.09%

Question 12

Which of the following appears on the Statement of Changes in Fund Balance?

		Assets
		Net income
		Cash
		Liabilities

Question 13

The statement that reports net income or net loss for a period of time, such as a month or year, is called the:

		Statement of Cash Flows
		Income Statement
		Statement of Changes in Fund Balance
		Balance Sheet

Question 14

Another name for net income is:

		profit.
		retained earnings.
		fund balance.
		dividends.

Question 15

On a Balance Sheet, the account "Buildings, net" is net of what amount?

		Accumulated Depreciation
		Interest Expense
		Distributions
		Depreciation Expense

Question 16

The following list of accounts is provided by an entity as of December 31, 2016.

Accounts Payable	$16,500
Accounts Receivable	2,300
Bonds Payable, due in 2030	49,000
Building	78,010
Cash	11,680
Equipment	6,500
Fund Balance	57,870
Land	24,100
Patient Service Revenue	14,600
Rent Expense	1,200
Salaries Expense	5,600
Supplies	780
Utilities Expense	350

Calculate net income.

		$7,450
		$57,870
		$6,670
		$50,420

Question 17

Which of the following statements is an accurate description of the matching principle?

		Revenues are reported when cash is received.
		Assets are recorded at their original cost.
		Expenses during the period must be matched with the revenue those expenses generated.
		Expenses are reported when cash is paid out.

Question 18

The following list of accounts is provided by an entity as of December 31, 2016.

Accounts Payable	$16,500
Accounts Receivable	2,300
Bonds Payable, due in 2030	49,000
Building	78,010
Cash	11,680
Equipment	6,500
Fund Balance	57,870
Land	24,100
Patient Service Revenue	14,600
Rent Expense	1,200
Salaries Expense	5,600
Supplies	780
Utilities Expense	350

Calculate total current liabilities.

		$65,500
		$16,500
		$2,300
		$18,800

Question 19

The Statement of Changes in Fund Balance is prepared for a period of time, such as a month or a year.

True

False

Question 20

The Statement of Changes in Fund Balance is prepared:

		before the Statement of Cash Flows but after the Balance Sheet.
		before the Income Statement but after the Balance Sheet.
		before the Balance Sheet but after the Statement of Cash Flows.
		before the Balance Sheet but after the Income Statement.