HSA126 Accounting Exam Questions And Accurate Answers
Graded A+ 2024/2025
Management Accounting - Answer Focuses on internal decision-making, planning, and
control. Provides detailed and specific reports for management use
Financial Accounting - Answer Focuses on external reporting and compliance.
Produces standardized reports such as balance sheets and income statements for
external stakeholders
Short-term Liabilities - Answer Obligations due within one year (e.g., accounts payable,
short-term loans)
Long-term Liabilities - Answer Obligations due after more than one year (e.g., long-term
loans, bonds payable).
Contractual Allowance - ANSWER The dollar amount difference between what the
provider bills and what the payer will reimburse. A negotiated discount with payers.
Equity - Answer: As applied to for-profit entities, it represents ownership interest.
Examples include common and preferred stock. It is the value of the organization to its
owners. The proportion of the assets available after all liabilities have been paid.
Net Assets - Answer The residual interest in the assets of an organization after
deducting liabilities. The remaining balance after liabilities are subtracted from assets.
Net worth or its total book value.
Cash Accounting - Answer Records the transaction when cash changes hands
Accrual Accounting - Answer Records the transaction when they are earned or
Graded A+ 2024/2025
Management Accounting - Answer Focuses on internal decision-making, planning, and
control. Provides detailed and specific reports for management use
Financial Accounting - Answer Focuses on external reporting and compliance.
Produces standardized reports such as balance sheets and income statements for
external stakeholders
Short-term Liabilities - Answer Obligations due within one year (e.g., accounts payable,
short-term loans)
Long-term Liabilities - Answer Obligations due after more than one year (e.g., long-term
loans, bonds payable).
Contractual Allowance - ANSWER The dollar amount difference between what the
provider bills and what the payer will reimburse. A negotiated discount with payers.
Equity - Answer: As applied to for-profit entities, it represents ownership interest.
Examples include common and preferred stock. It is the value of the organization to its
owners. The proportion of the assets available after all liabilities have been paid.
Net Assets - Answer The residual interest in the assets of an organization after
deducting liabilities. The remaining balance after liabilities are subtracted from assets.
Net worth or its total book value.
Cash Accounting - Answer Records the transaction when cash changes hands
Accrual Accounting - Answer Records the transaction when they are earned or
