Healthcare Finance Chapter 4 Questions and answers verified to pass 2025/2026

Healthcare Finance Chapter 4
Questions and answers verified to
pass 2025/2026
what is the purpose of the balance sheet - correct answer ✔presents a snapshot of the financial
position of an organization at a given point in time (also called the statement of financial position)



what are the three major sections of the balance sheet - correct answer ✔assets, liabilities, and owners
equity



what is the accounting identity and what information does it provide - correct answer ✔A=L+E



what is the relationship between assets and capital - correct answer ✔



what are the three main categories of asset accounts - correct answer ✔1) current assets-cash and
other assets that are expected to be converted into cash within one accounting period

2) long term investments-reports the amount the organization has invested in various forms of long
term securities

3) net property and equipment- fixed assets-a business's long term assets, such as land, buildings, and
equipment



what is the primary difference between current assets and the remainder of the asset side of the
balance sheet - correct answer ✔



what is the difference between gross property and equipment and net property and equipment - correct
answer ✔gross property and equipment- the total of the fixed assets historical price (purchase price)



net property and equipment- the current value of the fixed assets (historical price minus depreciation)