Reference no: EM131904049
1. A hospital taxing district and a state university with an affiliated teaching hospital can both be described as:
government entities.
voluntary entities.
profit-oriented entities.
entities that must pay income tax.
2. The Green Tree Nursing Facility possesses another note receivable in the amount of $9,000. This note will be paid in three installments: $3,000 in six months, $3,000 in eighteen months, and the remaining $3,000 in twenty-four months. The accountant will record this note receivable as follows:
current, or short-term asset of $9,000.
long-term asset of $9,000.
current asset of $3,000 and long term asset of $6,000.
current asset of $6,000 and long-term asset of $3,000.
3. Procedure codes, known as Current Procedural Terminology (CPT) codes, are most commonly used to group cost centers for:
inpatient services.
outpatient services.
the cost of doing business.
expenditures.
4. Indirect costs are sometimes called _____ costs.
common
uniform
joint
Both A and C are correct.
5. Assume the following: Cost of goods sold = $130,000; Purchases = $170,000; Beginning inventory = $40,000; Ending inventory = $80,000; Current assets = $240,000. Required: Calculate the average inventory, as used when calculating inventory turnover. Correct answer is:
60000
80000
120000
210000
6. The current ratio is typically measured against a standard of:
1 to 1.
2 to 1.
1 to 2.
2 to 2.
7. Which of these statements is correct?
Flexible budgets can be used to review prior performance of a department.
Static budgets may be used to plan a goal for the budget period.
Both of the above
Neither of the above
8. Estimates may be relied upon as inputs to certain reports. However, such estimates would not be appropriate when preparing:
internal financial statements.
budgets.
audited financial statements.
forecasts.
9. When purchasing equipment, the asset representing the equipment purchase is recorded on the organization's:
statement of income.
balance sheet.
Neither of the above
Both of the above
10. The final compliance date for adoption of ICD-10-CM and ICD-10-PCS codes (as of the date of this writing) is October 1:
2013
2014
2015
2016