Accounting Exam MBA
Questions and Answers
Latest updated version
Question:
A nurse manager is reviewing the accounting equation with a group of healthcare
administrators. Which formula correctly represents the fundamental accounting
equation?
a. Assets = Liabilities + Stockholders' Equity
b. Assets = Liabilities – Stockholders' Equity
c. Assets + Liabilities = Stockholders' Equity
d. Assets = Stockholders' Equity – Liabilities
✔️ Correct Answer: A
Rationale: The fundamental accounting equation is Assets = Liabilities + Stockholders'
Equity. This equation is the foundation of double-entry bookkeeping and must always
remain in balance. It shows that a company's resources (assets) are financed by creditors
(liabilities) and owners (stockholders' equity).
, Question:
A nurse is reviewing a hospital's ledger to identify its liabilities. Which of the following
would be classified as a liability?
a. Accounts receivable
b. Supplies
c. Accounts payable
d. Prepaid insurance
✔️ Correct Answer: C
Rationale: Liabilities represent the debts or obligations of a business. Accounts payable is
a liability, representing money owed to suppliers for goods or services purchased on
credit. The other options—accounts receivable, supplies, and prepaid insurance—are all
assets, as they represent resources owned by the business.
A nurse is reviewing a ledger to identify assets of a healthcare organization. Which of the
following is an example of an asset?
a. Unearned Rent
b. Accounts Payable
c. Accounts Receivable
d. Common Stock
✔️ Correct Answer: C
Rationale: Assets are resources owned by a business that provide future economic
benefit. Accounts receivable represents money owed to the organization for services
provided, which is an asset. Unearned rent and accounts payable are liabilities, while
common stock is part of stockholders' equity.
A nurse manager is analyzing the costs associated with a hospital's in-house laboratory.
Which of the following is an example of a product cost?
Questions and Answers
Latest updated version
Question:
A nurse manager is reviewing the accounting equation with a group of healthcare
administrators. Which formula correctly represents the fundamental accounting
equation?
a. Assets = Liabilities + Stockholders' Equity
b. Assets = Liabilities – Stockholders' Equity
c. Assets + Liabilities = Stockholders' Equity
d. Assets = Stockholders' Equity – Liabilities
✔️ Correct Answer: A
Rationale: The fundamental accounting equation is Assets = Liabilities + Stockholders'
Equity. This equation is the foundation of double-entry bookkeeping and must always
remain in balance. It shows that a company's resources (assets) are financed by creditors
(liabilities) and owners (stockholders' equity).
, Question:
A nurse is reviewing a hospital's ledger to identify its liabilities. Which of the following
would be classified as a liability?
a. Accounts receivable
b. Supplies
c. Accounts payable
d. Prepaid insurance
✔️ Correct Answer: C
Rationale: Liabilities represent the debts or obligations of a business. Accounts payable is
a liability, representing money owed to suppliers for goods or services purchased on
credit. The other options—accounts receivable, supplies, and prepaid insurance—are all
assets, as they represent resources owned by the business.
A nurse is reviewing a ledger to identify assets of a healthcare organization. Which of the
following is an example of an asset?
a. Unearned Rent
b. Accounts Payable
c. Accounts Receivable
d. Common Stock
✔️ Correct Answer: C
Rationale: Assets are resources owned by a business that provide future economic
benefit. Accounts receivable represents money owed to the organization for services
provided, which is an asset. Unearned rent and accounts payable are liabilities, while
common stock is part of stockholders' equity.
A nurse manager is analyzing the costs associated with a hospital's in-house laboratory.
Which of the following is an example of a product cost?
