Financial Accounting Concepts
RequiredRequired Question(s)
Required 1.

The statement of financial position is also known as the:

Statement of cash flows
Balance sheet
Income statement
Statement of retained earnings
Required 2.

A major source of cash from operating activities is:

Receipts from investment by owners
Receipts from sale of property, plant & equipment
Receipts from providing services
Receipts from bank financing
Required 3.

Assets that are used up as a result of firm's operations are called:

Liabilities
Expenses
Equity
Net Income
Required 4.

When patient accounts receivable are collected:

Total assets increase
Total assets increase
Total assets are constant
Total assets are constant
Required 5.

If a company purchased medical supplies on account (on credit), the accounting equation would show a:

Increase in assets and decrease in liabilities
Decrease in assets and increase in liabilities
Increase in assets and increase in liabilities
Decrease in assets and decrease in liabilities.
Required 6.

Which of the following statements about accrual vs. cash basis accounting is correct?

An event is recognized when a cash transaction occurs in accrual-basis accounting.
An event is recognized when a cash transaction occurs in cash-basis accounting.
Most healthcare organizations use cash accounting.
Cash accounting conforms with Generally Accepted Accounting Principles (GAAP).
Required 7.

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