Healthcare Accounting Assignment
1. Which of the following is not a provision that is expected to have a significant impact from the ACA?
a. Requirement that all payments for health care be based on quality of services
b. Requirement that almost all individuals have insurance coverage
c. Establishment of payment mechanisms for bundled payments and value based purchasing system
d. Requirement that states create insurance exchanges
2. Accountable Care Organizations as part of ACA are:
a. Mandatory
b. Exclusive
c. Voluntary
d. State organizations
3. All of the following factors contribute to the rising cost of health care except:
a. Aging population
b. New and returning consumers in the marketplace
c. Chronic Disease
d. Providers embracing lean Six Sigma and other techniques to deliver better care with less resources
4. Value Based Purchasing is designed to address only quality of care incentives
a TRUE
b FALSE
5. Retail Health Care is not viable in today's health care environment.
a TRUE
b FALSE
6. Balance Sheet for a non-profit contains all of the following except:
a. Organization's assets
b. Organizations liabilities
c. Stockholders' equity
d. Cash flow
7. Liabilities are defined as:
a. Financial obligations due
b. Cash and cash equivalents
c. Patient accounts receivable
d. Inventories
8. Other revenue refers to all of the following except:
a. Salary and wages
b. Appropriations and grants
c. Income from investments
d. Revenue from contributions
9. Capitation is a form of payment that compensates the provider:
a. For every visit and is payable by the patient
b. a certain amount per capita for a defined set of services.
10. Basic accounting equation is:
a. A + L = S/H Equity
b. A = L - S/H Equity
c. A = L + S/H Equity
d. A + S/H Equity = L
11. Transactions summarized by account are called:
a. Journal
b. Ledger
c. Balance
d. Asset
12. Liabilities are defined as:
a. Financial obligations due within a year or more
b. Cash and cash equivalents
c. Patient accounts receivable
d. Inventories
13. In the accrual accounting method:
a. Revenues are recognized when cash is received
b. Expenses are recognized when cash is paid out
c. Revenues are recognized when revenues are earned
d. All of the above
14. A Statement of Cash Flows provides information about how much revenue is generated and amount of resource used.
a TRUE
b FALSE
15. Contra asset is an account that when increased, decreases the value of a related asset on the books.
a TRUE
b FALSE
16. For each of the following accounts, identify it's nature - asset (A)/liability (L)/revenue (R)/Other Income (OI)/expense [E] and which of the two Financial Statement (Income Statement or Balance Sheet) it appears in
Account Nature F/S
(eg.) Cash A Balance Sheet
1 Salaries expense
2 Inventory
3 Patient service revenue
4 Accounts Payable
5 Gain from sale of asset
6 Accounts Receivable
7 Selling and marketing expense
8 Equipment
9 Dividend received
10 Treasury Bills
17. Prepare an Income Statement from the following information for Great Care Partners for the year ended December 31, 2014.
|
Salaries expense
|
$ 40,000
|
|
Administrative expense
|
$ 7,000
|
|
Interest expense
|
$ 5,200
|
|
Patient service revenue
|
$ 112,000
|
|
Income tax expense
|
$ 17,000
|
|
Rent expense
|
$ 23,000
|
|
Other Revenue
|
$ 9,000
|
|
Bad debt expense
|
$ 10,080
|
18. Prepare a Balance Sheet from the following information for the year ended December 31, 2015:
|
Long term debt
|
$ 500,000
|
|
Cash
|
$ 61,000
|
|
Allowance for bad debts
|
$ 72,000
|
|
Wages Payable
|
$ 43,000
|
|
Accounts receivable
|
$ 422,000
|
|
Accumulated depreciation
|
$ 350,000
|
|
Inventories
|
$ 110,000
|
|
Gross Plant & Equipment
|
$ 1,140,000
|
|
Accounts Payable
|
$ 40,000
|
|
Prepaid rent
|
$ 8,000
|
|
Increase in (Unrestricted) Net Assets
|
$ 181,000
|
|
Beginning balance, temporarily restricted net assets
|
$ 70,000
|
|
Net assets released from temporary restriction
|
$ 25,000
|
|
Beginning balance, unrestricted net assets
|
$ 475,000
|
|
Ending balance, permanently restricted net assets
|
$ 35,000
|