HFMA Business of Healthcare - Financial Accounting Concepts Exam Questions & Answers

HFMA Business of Healthcare -
Financial Accounting Concepts2

Assets - ANSWERS-What you have or are owed



Liability - ANSWERS-an amount owed



Equity - ANSWERS-What you get to keep or retain



Net assets or equity - ANSWERS-Difference between assets and liabilities. Considered the
owners financial interest or net worth



Accounting Equation - ANSWERS-Assets = Liabilities + Equity or Net Assets



Income Statement or Statement of Activities - ANSWERS-Financial Statement that summarizes
revenues, expenses, and income for an organization over a specified period of time (month,
quarter, year)



Balance Sheet - ANSWERS-a statement of the assets, liabilities, and capital (net assets) of a
business or other organization at a particular point in time, detailing the balance of income and
expenditure over the preceding period. Usually at the end of an accounting period.



The statement of cash flows is used to determine the sources and uses of - ANSWERS-Cash



Balance Sheet - ANSWERS-Permanent accounts because their balances carry forward to each
new and successive accounting period.