Saudi Electronic University HCM 213 Chapter 2 Multiple Choice 1)Which of the following is a basic financial statement? Balance Sheet Statement of Operations Statement of Cash Flows All of the above Balance Sheet for a non-profit contains all of the following except: Organization’s assets Organizations liabilities Stockholders’ equity Cash flow Assets are defined as: Long term debt Cash, investments, inventory and receivables Self-insurance reserves Accrued pension Liabilities are defined as: Financial obligations due within a year Cash and cash equivalents Patient accounts receivable Inventories Net assets do not include one of the following categories: Unrestricted Belated Temporary Permanent A statement of operations summarizes the organization’s total assets, liabilities and net assets in what time period? Last day of the accounting period Over a period of time Last quarter Annually Other revenue refers to all of the following except: Salary and wages Appropriations and grants Income from investments Revenue from contributions The statement of changes in net assets includes: Account balances Accounting Methods Why there was a change from one year to the next in the entire net asset section of the balance sheet Expense determinations Body of the statement of cash flows does not include: Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Current liabilities Cash flows from investing activities includes: Purchase of plant property and equipment Accounts payable Accrued pension Estimated third party payor settlements True or False GAAP requires certain disclosure (footnote) information to give a more clear picture of the financial position

Question

Saudi Electronic University

1. Statement of Operations
2. Statement of Cash Flows
3. All of the above
Balance Sheet for a non-profit contains all of the following except:
1. Organization’s assets
2. Organizations liabilities
3. Stockholders’ equity
4. Cash flow
Assets are defined as:
1. Long term debt
2. Cash, investments, inventory and receivables
3. Self-insurance reserves
4. Accrued pension
Liabilities are defined as:
1. Financial obligations due within a year
2. Cash and cash equivalents
3. Patient accounts receivable
4. Inventories
Net assets do not include one of the following categories:
1. Unrestricted
2. Belated
3. Temporary
4. Permanent
A statement of operations summarizes the organization’s total assets, liabilities and net assets in what time period?
1. Last day of the accounting period
2. Over a period of time
3. Last quarter
4. Annually

Other revenue refers to all of the following except:
1. Salary and wages
2. Appropriations and grants
3. Income from investments
4. Revenue from contributions
The statement of changes in net assets includes:
1. Account balances
2. Accounting Methods
3. Why there was a change from one year to the next in the entire net asset section of the balance sheet
4. Expense determinations
Body of the statement of cash flows does not include:
1. Cash flows from operating activities
2. Cash flows from investing activities
3. Cash flows from financing activities
4. Current liabilities
Cash flows from investing activities includes:
1. Purchase of plant property and equipment
2. Accounts payable
3. Accrued pension
4. Estimated third party payor settlements

True or False

GAAP requires certain disclosure (footnote) information to give a more clear picture of the financial position. True or False?

Balance sheet for investor owned entities presents a summary of the entity’s assets, liabilities and net assets. True or False?

Net assets section of a balance sheet for not for profits is analogous to the owner and equity on a for profit balance sheet. True or False?

Statement of cash flows discloses key noncash investing and financial transactions. True or False?

Assets are defined as guaranteed future economic benefits of an organization. True or False?