HCM 416 Chapter 4 Quiz

Select all the correct answers. Select all the correct sections of the Statement of Cash Flows a) Operating Activities b) Investing Activities c) Financing Activities d) Solvency Activities

A, B, & C Operating Activities, Investing Activities, & Financing Activities

Please select all the correct answers. A balance sheet contains information about an organization's a) Net Income b) Assets c) Liabilities d) Equity

B, C & D Assets, Liabilities, and Equity

Select all the correct answers. Examples of common current liabilities are a) Equity b) Accounts Payable c) Accrued Expenses d) Notes Payable

B, C, & D Accounts Payable, Accrued Expenses, & Notes Payable

Please match the term to the category that it best fits with. For example, cash is an example of a current asset. a) Inventories b) Net Patient Accounts Receivable c) Fixed Assets d) Accounts Payable e) Accrued Expenses f) Debt Instruments with financing greater than 1 year.

a) Inventories - Current Assets b) Net Patient Accounts Receivable - Current Assets c) Fixed Assets - Net Property and Equipment d) Accounts Payable - Current Liabilities e) Accrued Expenses - Current Liabilties f) Debt Instruments with financing greater than 1 year. - Long-Term Debt

This is True/False The equity section of the balance sheet, more than anything else, distinguishes an investor-owned business from a not-for-profit business. a) True b) False

a) True

This is a true/false question. The basic accounting equation is Assets = Liabilities - Equity a) True b) False

b) False Assets = Liability + Equity

Please select the correct answer. Liabilities represent claims against an organization's assets that are fixed by contract. In other words, liabilities are considered ..... a) Receivables b) Financial Obligations c) Discretionary Funds d) Accrued Liabilities

b) Financial Obligations

Please select the correct answer. Because current assets are expected to by quickly converted to cash, they are important to an organization's.... a) Profitability b) Non-Operating Income c) Liquidity d) Expense Matching Principle

c) Liquidity