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

1. Which of the following items are part of a business's set
of financial statements?

Answer: _____
2. True or False: The requirement to provide financial
accounting information is driven by the need for outside
stakeholders (primarily investors) to have reliable
information about the financial status of an organization.
Answer: _____

3. True or False: The set of rules and regulations that
govern the content and format of financial statements is
called Government Acceptable Procedures (GAP).
Answer: _____

4. Which of the following statements about cash versus
accrual accounting is most correct?
a. In cash accounting, an event is recognized when a cash
transaction occurs.
b. In accrual accounting, an event is recognized when a
cash transaction occurs.
c. Most large healthcare organizations use cash accounting.
d. Most small healthcare organizations use accrual
accounting because it closely matches statements required for
income 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 income
statement is most correct?

c. It reports the economic profitability of an organization.
d. Its three major sections are operating costs, nonoperating
costs, and total (net) costs.
e. Income statements are always prepared annually, but
never for shorter periods (for example, quarterly).
Answer: _____
6. Which of the following statements about gross and net
patient service revenue is most correct?

Answer: _____

7. True or False: Under accrual accounting, all revenues
reported 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. True
b. False
Answer: _____