Which of the following is a liability?

a. Office supplies

b. Investment property

c. Dental chair

d. Gloves

Dr. Winn decides that the 10-year-old office furniture and equipment need to be replaced. Dr. Winn purchased the items for $375,000. The software and computers also needed to be upgraded at a cost of $50,000 each for three computers. Since Dr. Winn does not have enough cash to pay for these items, he decided to borrow $500,000 from his local bank. How would the furniture and equipment purchased be recorded?

a. As a credit

b. As a debit and a credit

c. As a debit

Which account is not impacted by a bank loan?

a. Expense account

b. Cash account

c. Liability account

d. Asset account

Sally Feng has an appointment to see her physician Dr. Tunja for follow up on her hand surgery. Her bill for the office visit is $75.00 and she pays in cash at the time of her appointment. How would Sally's payment be recorded?

a. As a debit and a credit

b. As a credit only

c. As a debit only

Which of the following is not a step in the accounting transactions for a medical facility?

a. Additional expenses are recorded elsewhere

b. Ensure debits and credits match

c. Assign debits and credits

d. Identify the amounts

Dr. Sommer's bank loan of $50,000 has a monthly principal of $1,000 and interest of $430. Her patient numbers are increasing due to referrals. As a result, Dr. Sommer can start paying down the principal and interest on the loan. How would the bank loan be recorded?

a. As a credit only

b. As a debit and a credit

c. As a debit only

Which of the following is a capital asset?

a. Cash

b. Surgical gloves

c. Medical inventory

d. Furniture

Which of the following is the fundamental accounting equation in double-entry accounting?

a. Liabilities = Assets + Net Worth

b. Net Worth = Liabilities + Assets

c. Assets = Liabilities - Net Worth

d. Assets = Liabilities + Net Worth

What is the definition of double-entry accounting?

a. Each entry into the financial system includes one or more debits balanced by one or more debits.

b. Each entry into the financial system includes one or more assets balanced by one or more assets.

c. Each entry into the financial system includes one or more assets balanced by one or more credits.

d. Assets = liabilities + credits

Dr. Perry was balancing the medical office account based on the assets and liabilities of the medical practice he owns to determine his total amount of assets. If there is $200,000 in liabilities and $15,000 in Net Worth, what would his assets be?

a. $215,000

b. $105,000

c. $200,000

d. $115,000