ACC 628 Exam 1 Practice Exam Fall 2017 with Solutions.pdf - ACC 628 CPH 655 = Practice Exam 1 page 1 ACC 628\/CPH 655 Anderson NAME Management Accounting

# ACC 628 Exam 1 Practice Exam Fall 2017 with Solutions.pdf -...

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ACC 628 CPH 655 =- Practice Exam 1 page - 1 ACC 628/CPH 655 - Anderson NAME________________________________ Management Accounting for Health Care Organizations Practice Exam 1– Fall 2016 I. (2 points each) Place the letter of the response that you consider the best answer in the space indicated at the end of each question. These questions will be graded based only on the letter response. You will not receive any partial credit on this section of the test. 1. Liabilities are defined as: a. Financial obligations due within a year b. Cash and cash equivalents c. Patient accounts receivable d. Inventories Answer____________ 2. A clinic has a current ratio of 1.8. If the clinic borrows \$100,000 from a bank for three months to cover expected cash shortfalls, what effect would this have on the clinic’s current ratio? Answer____________ 3. One of your suppliers offers you the following terms: 2/20 net 60. Compute the approximate annual interest cost of not taking the discount. Answer____________ 4. Age of Plant ratio provides: Answer____________
ACC 628 CPH 655 =- Practice Exam 1 page - 2 5. Vertical analysis answers which general question? a. What is the percentage change in a line item from one year to the next? b. Which analysis is best to use in financial decision making? c. Which financial statement is best to use in financial decision making? d. What percentage of one line item is another line item? Answer____________ 6. Which of the following needs to be considered when using and interpreting ratios? I. A ratio can best be interpreted relative to a benchmark. II. Reliability of the data III. No one ratio is necessarily better than any other ratio IV. With benchmarking, it is not necessary to make sure the same formula is used a. II only. b. I and II c. I, II, and III. d. I, II, III, and IV Answer____________ 7. Operating margin ratio measures: Answer____________

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