1. Which of the following items are part of a businesss set.docx

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1. Which of the following items are part of a business's setof financial statements?
Answer: _____2. True or False: The requirement to provide financialaccounting information is driven by the need for outsidestakeholders (primarily investors) to have reliableinformation about the financial status of an organization.
Answer: _____
3. True or False: The set of rules and regulations thatgovern the content and format of financial statements iscalled Government Acceptable Procedures (GAP).
Answer: _____
4. Which of the following statements about cash versusaccrual accounting is most correct?a. In cash accounting, an event is recognized when a cashtransaction occurs.b. In accrual accounting, an event is recognized when acash transaction occurs.c. Most large healthcare organizations use cash accounting.d. Most small healthcare organizations use accrualaccounting because it closely matches statements required forincome tax purposes.e. In cash accounting, an event is recognized when the
obligation for a cash transaction is created.Answer: _____5. Which of the following statements about the incomestatement is most correct?
c. It reports the economic profitability of an organization.d. Its three major sections are operating costs, nonoperatingcosts, and total (net) costs.e. Income statements are always prepared annually, butnever for shorter periods (for example, quarterly).Answer: _____6. Which of the following statements about gross and netpatient service revenue is most correct?
Answer: _____
7. True or False: Under accrual accounting, all revenuesreported on the income statement represent cash collections.
Answer: _____8. True or False: Under accrual accounting, all expenses
reported on the income statement represent cash costs.a. Trueb. False
Answer: _____

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Term
Fall
Professor
NoProfessor
Tags
Balance Sheet, Generally Accepted Accounting Principles

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