List and describe the three categories of net assets

Assignment Help Financial Accounting

Reference no: EM133204542

Assignment - Financial Statements and General Principles of Accounting Paper

Chapter 8 - General Principles of Accounting

Short Answer (provide a short answer to each posed question below)

Q1. List and describe the three categories of net assets.

Q2. What is an accounting entity?

Q3. What are the double-entry accounting system and the duality concept? How are they related?

Q4. What is an audit (in the context of financial accounting)?

Multiple Choice -

Q5. Which of the following is not a "principle" of financial accounting?

A. Historical cost

B. Revenue recognition

C. Continuity

D. Matching

E. Full disclosure

Q6. Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

A. Reduces it

B. Increases it

C. No effect

CHAPTER 9 - FINANCIAL STATEMENTS

Short Answer

Q1. What are the four basic financial statements?

Q2. What are some ways in which accounting for health care organizations, especially not-for-profit ones, tends to differ from accounting in other industries?

True/False -

Q3. Expense and expenditure may not be equivalent in any given period.

Q4. The Statement of Operations is similar to, but not identical to, the Income Statement.

Multiple Choice -

Q5. A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):

A. Income statement

B. Statement of retained earnings

C. Balance sheet

D. Statement of cash flows

E. Report of management

Q6. The heading of every financial statement should contain the:

A. name, title, and place of business

B. name, title, and specific date of statement

C. title, name, type of ownership, and unit of measurement

D. title of statement, name of entity, and unit of measurement

E. name, title, specific date of statement, and unit of measurement

Q7. If an organization's Board of Directors were to set aside assets to be used for replacement of plant and equipment, where would this be reflected on the balance sheet?

A. Assets Limited as to Use

B. Temporarily Restricted Net Assets

C. Permanently Restricted Net Assets

D. Liability

E. none of the above

Q8. Deferred revenues are:

A. reported on the balance sheet as a liability

B. reported on the balance sheet as an asset

C. reported on the statement of operations as revenue

D. reported on the statement of operations as a deduction from revenue

E. not reported

Numeric Problems

Q9. Given below is a list of account balances for Currie Hospital as of December 31, 2017. Prepare a balance sheet as of December 31, 2017, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)

Account	Balance
Gross plant & equipment	$6,000,000
Accounts payable	130,000
Inventories	100,000
Other current liabilities	70,000
Net accounts receivable	650,000
Accrued expenses	100,000
Accumulated depreciation	200,000
Long-term debt	5,000,000
Cash	210,000

Textbook - ESSENTIALS OF HEALTH CARE FINANCE, EIGHTH EDITION by William O. Cleverley and James O. Cleverley.

Reference no: EM133204542

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