LSUS MHA 706 MIDTERM 200 FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Impact of the Affordable Care Act (what the bill changed about the
healthcare environment).
Answer: Created new standards, individual mandates, exchanges,
and Medicaid expansion.
Focused on quality through clinical compensation, bundled
payment, value-based purchasing.
◉ Regulations and standards of financial accounting (e.g. SEC, GAAP,
FASB).
Answer: -Securities and Exchange Commission (SEC): has the legal
authority to regulate the form and content of financial statements.
-Financial Accounting Standards Board (FASB)
-Generally Accepted Accounting Principles (GAAP): the conventions
that have evolved from the pronouncements and rulings of the
implementing organizations constitute a set of guidelines for the
preparation of financial accounting statements. -ONLY applies only
to financial accounting statements. Does NOT remain STATIC.
◉ GAAP (Generally Accepted Accounting Principles).
Answer: Split into 3 categories: Assumptions, Principles, &
Constraints
,◉ Assumptions of GAAP.
Answer: economic entity, monetary unit, periodicity, going concern
◉ Principles of GAAP.
Answer: historical cost, revenue recognition, expense recognition
(matching), full disclosure
◉ Constraints of GAAP.
Answer: Materiality & Cost-benefit
◉ Accrual Accounting.
Answer: Accounting that records the impact of a business event as it
occurs, regardless of whether the transaction affected cash.
*More complicated, provides a better picture of true economic status
of a business, is required by GAAP. Record revenue at the point of
time
◉ Cash Accounting.
Answer: accounting that recognizes business transactions only when
cash is received or disbursed.
, *Simple and easy and mimics tax statements. Record when I get paid
for a service.
◉ Income statement components.
Answer: Revenues, expenses, non-operating income, taxes (if for
profit), & net income.
◉ Revenues.
Answer: represent both cash received and payer obligations.
◉ Test Question-.
Answer: Provision for bad debt would be item on income statement.
◉ Expenses.
Answer: resource expenditures required to produce the revenues.
(Both cash and noncash expenses are recognized.)
◉ Non-operating Income.
Answer: reports income from activities not related to the provision
of patient services.
Example: **philanthropic gift, 1 time gift**
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Impact of the Affordable Care Act (what the bill changed about the
healthcare environment).
Answer: Created new standards, individual mandates, exchanges,
and Medicaid expansion.
Focused on quality through clinical compensation, bundled
payment, value-based purchasing.
◉ Regulations and standards of financial accounting (e.g. SEC, GAAP,
FASB).
Answer: -Securities and Exchange Commission (SEC): has the legal
authority to regulate the form and content of financial statements.
-Financial Accounting Standards Board (FASB)
-Generally Accepted Accounting Principles (GAAP): the conventions
that have evolved from the pronouncements and rulings of the
implementing organizations constitute a set of guidelines for the
preparation of financial accounting statements. -ONLY applies only
to financial accounting statements. Does NOT remain STATIC.
◉ GAAP (Generally Accepted Accounting Principles).
Answer: Split into 3 categories: Assumptions, Principles, &
Constraints
,◉ Assumptions of GAAP.
Answer: economic entity, monetary unit, periodicity, going concern
◉ Principles of GAAP.
Answer: historical cost, revenue recognition, expense recognition
(matching), full disclosure
◉ Constraints of GAAP.
Answer: Materiality & Cost-benefit
◉ Accrual Accounting.
Answer: Accounting that records the impact of a business event as it
occurs, regardless of whether the transaction affected cash.
*More complicated, provides a better picture of true economic status
of a business, is required by GAAP. Record revenue at the point of
time
◉ Cash Accounting.
Answer: accounting that recognizes business transactions only when
cash is received or disbursed.
, *Simple and easy and mimics tax statements. Record when I get paid
for a service.
◉ Income statement components.
Answer: Revenues, expenses, non-operating income, taxes (if for
profit), & net income.
◉ Revenues.
Answer: represent both cash received and payer obligations.
◉ Test Question-.
Answer: Provision for bad debt would be item on income statement.
◉ Expenses.
Answer: resource expenditures required to produce the revenues.
(Both cash and noncash expenses are recognized.)
◉ Non-operating Income.
Answer: reports income from activities not related to the provision
of patient services.
Example: **philanthropic gift, 1 time gift**
