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HPA 14 Assignment October 19th Multiple Choice
HPA 14 Assignment October 19th Multiple Choice
HPA 14
a. The balance sheet has upper and lower (or left and right) sections.
2. Like the income statement, the balance sheet reports the status of an
organization over some period.
a. True
b. False
c. Equity is reduced.
e. Cash is reduced.
b. The statement of cash flows uses information from both the income
statement and the balance sheet.
d. The most important line on the statement of cash flows is the "bottom
line," the net increase (decrease) in cash.
a. $200,000
b. $190,000
c. $180,000
d. $170,000
Cash $70,000
Inventories $50,000
Cash $70,000
Inventories $50,000
Assume that the business uses $10,000 of its cash to pay for supplies that
were ordered on credit terms and have already been received and booked
(recorded on the balance sheet). Which of the following statements
reflects the resulting balance sheet change?
d. The cash account decreases by $10,000, and the accounts payable account
decreases by $10,000.
Cash $70,000
Inventories $50,000
Assume that the business uses $30,000 of its cash to pay salaries. Which
of the following statements reflects the resulting balance sheet change?
d. The cash account decreases by $30,000, and the long-term debt account
is reduced by $30,000.
e. The company does not have the ability to pay $30,000 in salaries.
a. True
b. False
a. $800,000
b. $1.2 million
c. $200,000
d. $1 million
b. Equity is the residual claim against assets after all liabilities have
been paid off.
15. Which of the following would most likely appear as an asset on the
balance sheet of a healthcare organization?
a. Salaries owed to employees, but not paid as of the balance sheet date
16. Which of the following would most likely appear as a liability on the
balance sheet of a healthcare organization?
c. Salaries owed to employees but not paid as of the balance sheet date