Health Care Accounting Management Midterm Q & A

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Accounting fundamentals for Healthcare Management

Midterm exam

Chapters 1 – 9

 

The exam is worth a total of 140 points. Questions 1,7,11,12 are each worth 5 points. Questions 2,4,5,6,10,13 are each worth 10 points. Questions 3,8,9,14 are each worth 15 points. Show your work for partial credit.

 

Explain your choice in detail. Your answer should include definitions, calculations, and support your answer with details information.

 

 

  • True or false? Health care managers should only be concerned about the organization’s long-term financial health and prospects. Explain your choice.

 

 

 

 

 

 

 

 

  • If you typed the following formula into Excel, what number would it generate?

=(15/3)+5*(6/2)

 

 

 

 

 

  • Discuss four significant details of the Patient Protection and Affordable Care Act of 2010.

 

 

 

 

 

 

 

 

 

  • What is the difference between “equity” and “net assets”?

 

 

 

 

 

  • Select all of the following accounts that would be considered assets.
  1. cash
  2. patient receivables
  3. mortgage payable
  4. goodwill
  5. notes payable

 

 

6) Use the following terms to fill in the correct answers.

  1. Assets
  2. Liabilities
  3. Equity/Net Assets
  4. Revenues
  5. Expenses
  6. Surplus or Deficit/Change in Net Assets

 

An operating statement for an organization lists the  __. __,  . __ , . __, __, __ while the balance sheet presents an organization’s . __, . __, . __, __, ___.

 

 

 

 

  1. Choose the correct answer. The GAAP concept that values assets at what an organization paid for them at acquisition is termed:
  2. Fair market valuation
  3. Objective measurement
  4. Replacement cost basis

 

 

 

 

  • Describe four methods for valuing assets and explain the strengths and weaknesses of each.

 

 

 

 

 

 

 

 

 

  • Create a journal entry and a T-Account for each of the following transactions:
  1. $15,000 worth of equipment is purchased on credit.
  2. $40,000 of patient bills from last year are collected in cash.
  3. $10,000 is received from a managed care company for services to be rendered next year for members
  4. $20,000 worth of supplies is purchased and paid for in cash.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • Why do organizations prepare cash flow statements and operating statements?

 

 

 

 

 

 

 

  • True or false? Because auditors assess the internal controls of the organization, audited financial statements signify that fraud within the organization is not a concern. Explain your answer.

 

 

 

 

 

 

 

 

  • True or false? The detection of fraud and embezzlement is the primary purpose of audits. Explain your answer.

 

 

 

 

 

 

 

 

 

  • Describe the process an outside auditor uses to analyze an organization’s transactions to ensure accuracy.

 

 

 

 

 

  • Describe and discuss a reason for audit failure.

 

 

 

Last Updated on October 4, 2019