Reference no: EM132483237

Question 1: $150,000 worth of medical supply is purchased in cash. Which of the following entry is correct?

A. credit $150,000 on cash

B. Debit $150,000 on accounts payable

C. Credit $150,000 on Inventory/Supplies

D. Debit $150,000 on Medical Expenses

Question 2: $90,000 worth of computer part is purchased. Half of the payment is paid in cash, the other part is paid on account. Which following entry is correct?

A. Debit $50,000 on Cash

B. Credit $90,000 on Cash

C. Debit $90,000 on Inventories/Supplies

D. Credit $90,000 on Accounts Payable

Question 2: $5,000 worth of medical inventories has some defects. Due to the defects, this part is returned to the seller. The seller paid in cash for the returned supplies. Which of the following entry is correct?

A. Credit $5,000 on Cash

B. Debit $5,000 on Account Receivable

C. Credit $5,000 on Inventories/Supplies

D. Debit $5,000 Accounts Payable

Question 4: Bills are submitted to insurance companies in the amount of $190,000 for services rendered to patients. Which following entry is correct?

A. Credit $190,000 on Accounts Payable

B. Debit $190,000 on Patient Service Revenue

C. Credit $190,000 on Patient Service Revenue

D. Debit $190,000 on Cash

Question 5: Cash payments of $90,000 are received for services previously provided and billed. Which of the following entry is correct?

A. Debit $90,000 on Patient Service Revenue

B. Credit $90,000 on Cash

C. Credit $90,000 on Accounts Receivable

D. Debit $90,000 on Accounts Receivable

Question 6: Check payments of $100,000 are received for services previously provided and billed. Which of the following entry is correct?

A. Debit $100,000 on Patient Service Revenue

B. Credit $100,000 on Cash

C. Debit $100,000 on Cash

D. Debit $100,000 on Accounts Receivable

Question 7: Due to a medical device breakdown, a repairment is purchased by a tech service $15,000 is paid in cash. Which of the following entry is correct?

A. Debit $15,000 on Cash

B. Credit $15,000 on Maintenance and Repair Expenses

C. Debit $15,000 on Maintenance and Repair Expenses

D. Credit $15,000 on Medical Equipments

Question 8: Wages due to employees that had been previously recorded as a liability are now paid in cash in the amount of $190,000. Which of the following is correct?

A. Debit $190,000 on Wages Payable

B. Debit $190,000 on Cash

C. Credit $190,000 on Wages Payable

D. Debit $190,000 on Employer Expenses

Question 9: A one-year insurance policy is purchased for $80,000 in cash. Which of the following entry is correct?

A. Debit $80,000 on Cash

B. Credit $80,000 on Insurance Expenses

C. Debit $80,000 on Prepaid Insurance

D. Credit $80,000 on Prepaid Insurance

Question 10: December 31st. At year end, insurance adjustment one-year insurance is used. Which of the following entry is correct?

A. Debit $8,000 on Insurance Expenses

B. Credit $8,000 on Insurance Expenses

C. Debit 80,000 on Insurance Expenses

D. Credit $80,000 on Insurance Expenses