MHA 706 Module 2 Part 2 Questions and
Answers 2026 Update
What is the difference between income statement and
balance sheet? - Correct Answers ✅Income statement-
Information about a business's operations and profitability.
Over a period of time.
Balance sheet-Contains information about The assets of an
organization, The liabilities and equity of the business, or how
the assets are financed. Presents a business's position at a
given point in time
What are the components of balance sheet? - Correct
Answers ✅Assets
Liabilities/Equity
What does the balance sheet do? - Correct Answers
✅Highlights the accounting identity, often called the basic
accounting equation
What is the accounting identity? - Correct Answers
✅Assets=Liabilities+Equity or
Equity = Assets - Liabilities
equity amount is a residual (what remains when liabilities are
subtracted from assets)
What are assets? - Correct Answers ✅Resources that the
organization posses that help create economic benefits for
the business.
, MHA 706 Module 2 Part 2 Questions and
Answers 2026 Update
What are shot-term investments/marketable securities
(current assets)? - Correct Answers ✅Highly liquid,
typically low-risk, securities having a maturity of less than
one year (but greater than three months). Ex; Treasury Bills
What are cash equivalents ( current assets)? - Correct
Answers ✅Cash-like investments with maturities of three
months or less
What is Net Patient account receivable (current asset)? -
Correct Answers ✅revenues owed to the business but not
yet collected
What are inventories (current assets)? - Correct Answers
✅the dollar amount of expendable supplies on hand
For providers, inventories are primarily medical supplies
Do providers with small inventory balances report inventory
separately? - Correct Answers ✅No they will report them in
a catchall "Other current assets" account
How are current assets listed? - Correct Answers ✅In order
of liquidity
1.Cash and cash equivalents
2.Short-term investments
Answers 2026 Update
What is the difference between income statement and
balance sheet? - Correct Answers ✅Income statement-
Information about a business's operations and profitability.
Over a period of time.
Balance sheet-Contains information about The assets of an
organization, The liabilities and equity of the business, or how
the assets are financed. Presents a business's position at a
given point in time
What are the components of balance sheet? - Correct
Answers ✅Assets
Liabilities/Equity
What does the balance sheet do? - Correct Answers
✅Highlights the accounting identity, often called the basic
accounting equation
What is the accounting identity? - Correct Answers
✅Assets=Liabilities+Equity or
Equity = Assets - Liabilities
equity amount is a residual (what remains when liabilities are
subtracted from assets)
What are assets? - Correct Answers ✅Resources that the
organization posses that help create economic benefits for
the business.
, MHA 706 Module 2 Part 2 Questions and
Answers 2026 Update
What are shot-term investments/marketable securities
(current assets)? - Correct Answers ✅Highly liquid,
typically low-risk, securities having a maturity of less than
one year (but greater than three months). Ex; Treasury Bills
What are cash equivalents ( current assets)? - Correct
Answers ✅Cash-like investments with maturities of three
months or less
What is Net Patient account receivable (current asset)? -
Correct Answers ✅revenues owed to the business but not
yet collected
What are inventories (current assets)? - Correct Answers
✅the dollar amount of expendable supplies on hand
For providers, inventories are primarily medical supplies
Do providers with small inventory balances report inventory
separately? - Correct Answers ✅No they will report them in
a catchall "Other current assets" account
How are current assets listed? - Correct Answers ✅In order
of liquidity
1.Cash and cash equivalents
2.Short-term investments
