HEALTHCARE FINANCE EXAM TEST 1 AND
2 NEWEST TEST WITH QUESTIONS AND
CORRECT ANSWERS RATED A+
Test 1
Which of the following statements about the organization of the
balance sheet is most correct? Correct Answer - answers a & b
are correct
- the balance sheet has upper and lower (or left and right)
sections
- assets are divided into current & long-term categories
which of the following equations best describes the accounting
identity? Correct Answer assets = liabilities + equity
which of the following statements about the balance sheet is most
correct? Correct Answer none of the above statements is correct
assume that the value of diagnostic equipment suddenly falls
because of technological obsolescence. How is the balance sheet
adjusted to preserve that accounting identity? Correct Answer
equity is reduced
which of the following statements concerning accumulated
depreciation is most correct? Correct Answer none of the above
statements is correct
which of the following statements concerning the statement of
cash flows is most correct? Correct Answer the statement of
cash flows uses information from both the income statement and
the balance sheet
,Assume that a business's balance sheet reports total assets of
$500,000 and total liabilities of $300,000. Now assume that
$20,000 of net fixed assets (net plant and equipment) are written
off due to technological obsolescence. All else the same, what is
the total equity of the business after the write-off Correct Answer
180,000
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Which of the following statements is most correct? Correct
Answer the business, in the aggregate over time, has been
profitable
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Assume that the business uses $10,000 of its cash to pay for
supplies that were ordered on credit terms and have already been
, received and booked (recorded on the balance sheet). Which of
the following statements reflects the resulting balance sheet
change? Correct Answer the cash account decreases by
$10,000, and the accounts payable account decreases by
$10,000
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Assume that the business uses $30,000 of its cash to pay
salaries. Which of the following statements reflects the resulting
balance sheet change? Correct Answer the cash account
decreases by $30,000, and the retained earnings account is
reduced by $30,000
Carlisle Clinic, a not-for-profit organization, reported an equity
balance of $1 million on its December 2012 balance sheet.
Assuming Carlisle Clinic reported net income of $200,000 for the
year that ended December 31, 2012, and had no other
adjustments to equity during 2012, what was Carlisle Clinic's
equity balance as of December 31, 2011? Correct Answer
$800,000
which of the following statements about equity is most correct?
Correct Answer equity is the residual claim against assets after
all liabilities have been paid off.
2 NEWEST TEST WITH QUESTIONS AND
CORRECT ANSWERS RATED A+
Test 1
Which of the following statements about the organization of the
balance sheet is most correct? Correct Answer - answers a & b
are correct
- the balance sheet has upper and lower (or left and right)
sections
- assets are divided into current & long-term categories
which of the following equations best describes the accounting
identity? Correct Answer assets = liabilities + equity
which of the following statements about the balance sheet is most
correct? Correct Answer none of the above statements is correct
assume that the value of diagnostic equipment suddenly falls
because of technological obsolescence. How is the balance sheet
adjusted to preserve that accounting identity? Correct Answer
equity is reduced
which of the following statements concerning accumulated
depreciation is most correct? Correct Answer none of the above
statements is correct
which of the following statements concerning the statement of
cash flows is most correct? Correct Answer the statement of
cash flows uses information from both the income statement and
the balance sheet
,Assume that a business's balance sheet reports total assets of
$500,000 and total liabilities of $300,000. Now assume that
$20,000 of net fixed assets (net plant and equipment) are written
off due to technological obsolescence. All else the same, what is
the total equity of the business after the write-off Correct Answer
180,000
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Which of the following statements is most correct? Correct
Answer the business, in the aggregate over time, has been
profitable
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Assume that the business uses $10,000 of its cash to pay for
supplies that were ordered on credit terms and have already been
, received and booked (recorded on the balance sheet). Which of
the following statements reflects the resulting balance sheet
change? Correct Answer the cash account decreases by
$10,000, and the accounts payable account decreases by
$10,000
Consider the following balance sheet:
Cash $70,000
Accounts receivable $30,000
Inventories $50,000
Net fixed assets $350,000
Total assets $500,000
Accounts payable $30,000
Long-term debt $20,000
Common stock $200,000
Retained earnings $250,000
Total liabilities and equity $500,000
Assume that the business uses $30,000 of its cash to pay
salaries. Which of the following statements reflects the resulting
balance sheet change? Correct Answer the cash account
decreases by $30,000, and the retained earnings account is
reduced by $30,000
Carlisle Clinic, a not-for-profit organization, reported an equity
balance of $1 million on its December 2012 balance sheet.
Assuming Carlisle Clinic reported net income of $200,000 for the
year that ended December 31, 2012, and had no other
adjustments to equity during 2012, what was Carlisle Clinic's
equity balance as of December 31, 2011? Correct Answer
$800,000
which of the following statements about equity is most correct?
Correct Answer equity is the residual claim against assets after
all liabilities have been paid off.
