True or false: The balance sheet is also called the statement of financial position.

False

True

1 point

2.

Question 2

Which of the following equations best describes the basic accounting equation?

Long-term assets = Short-term assets + Net assets

Assets = Liabilities + Net assets

Short-term assets = Cash + Receivables

Long-term liabilities = Notes + Bonds

1 point

3.

Question 3

At the end of the most recent fiscal year, South Shore Hospital reported total assets of $1,000,000 and total liabilities of $550,000. How much did the hospital report in net assets at the end of the most recent fiscal year?

$450,000

$550,000

$1,000,000

$1,550,000

1 point

4.

Question 4

All of the following are current assets, except:

Accounts payable

Accounts receivable

Cash

Inventory

1 point

5.

Question 5

True or false: Net fixed assets are calculated as gross fixed assets plus accumulated depreciation.

False

True

1 point

6.

Question 6

Which of the following items would appear as a liability on the balance sheet of a healthcare organization?

Patient services revenues earned during the accounting period

Salaries and wages expenses paid to employees during the accounting period

The outstanding balance on a loan taken by the healthcare organization

Interest payments made by the healthcare organization on an outstanding loan

1 point

7.

Question 7

Notes payable could not appear as a line item on the balance sheet in which two sections?

Current assets

Current liabilities

Non-current assets

Non-current liabilities

1 point

8.

Question 8

True or false: In addition to unrestricted net assets, many not-for-profit organizations report restricted net assets on their balance sheet.

False

True

1 point