MHA 706 Module 2 Quiz
Generally Accepted Accounting Principles (GAAP) are said to be compromised of
assumptions, principles, and constraints. Match the term to its appropriate category.
Going concern -
Expense Matching -
Materiality - - answer a) GAAP assumptions
b) GAAP Principle
c) GAAP Constraint
reports income from activities not related to "core" business of the organization. -
answer on-operating Income
is a measure of income generated from the "core" business of the organization. -
answer Operating Income
often referred to as the "bottom line" - answer Net Income
often what individuals assessing income statements are trying to understand - answer
Profitability of the Organizations
typically the largest expense of a healthcare organization. - answerSalaries and
Benefits
the reason why operating revenues may not represent the actual amount of cash
received - answerAccural accounting
represent the resources used to create revenues - answerExpenses
payment for services provided (after the provisions for bad debts is considered) -
answerNet Patient services revenue
recognizes income when cash is received - answerCash accounting
agency that has the legal authority to regulate the form and content of financial
statement of publicly traded companies - answerSecurities and Exchange Commission
(SEC)
recognizes income when a cash obligation is created - answerAccural accounting
a set of guidelines needed for the preparation of financial accounting statements -
answerGenerally Accepted Accounting Principles (GAAP)
Generally Accepted Accounting Principles (GAAP) are said to be compromised of
assumptions, principles, and constraints. Match the term to its appropriate category.
Going concern -
Expense Matching -
Materiality - - answer a) GAAP assumptions
b) GAAP Principle
c) GAAP Constraint
reports income from activities not related to "core" business of the organization. -
answer on-operating Income
is a measure of income generated from the "core" business of the organization. -
answer Operating Income
often referred to as the "bottom line" - answer Net Income
often what individuals assessing income statements are trying to understand - answer
Profitability of the Organizations
typically the largest expense of a healthcare organization. - answerSalaries and
Benefits
the reason why operating revenues may not represent the actual amount of cash
received - answerAccural accounting
represent the resources used to create revenues - answerExpenses
payment for services provided (after the provisions for bad debts is considered) -
answerNet Patient services revenue
recognizes income when cash is received - answerCash accounting
agency that has the legal authority to regulate the form and content of financial
statement of publicly traded companies - answerSecurities and Exchange Commission
(SEC)
recognizes income when a cash obligation is created - answerAccural accounting
a set of guidelines needed for the preparation of financial accounting statements -
answerGenerally Accepted Accounting Principles (GAAP)
