I. Common stocks increase. III. Accounts .pdf

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I. Common stocks increase. III. Accounts receivable increase. II. Accounts payable decrease. IV. Inventory decreases. A) I only C) II and III only B) I and IV only D) I, II, and III only 2. Which of the following would be considered an increase in cash or cash availability? I. Inventories increase. III. Accounts receivables decrease. II. Common stocks increase. IV. Gross fixed assets increase. A) II only C) II and III only B) I and III only D) I, III, and IV only 3. The purchase of inventory on credit (increases, decreases) both accounts payable and inventory, which are balance sheet accounts. It would, therefore, have (no, a positive, a negative) effect on the income statement until it is sold. 4. Cash collected on accounts receivable produces (an increase, a decrease) in cash and (an increase, a decrease) in accounts receivable, so that there is (no, a positive, a negative) change in the asset accounts. 5 Which of the following accounts would not be involved in preparing the income statement? A) Depreciation expense C) Accumulated depreciation B) Accumulated retain earnings D) Retained earnings E) B and C Answer all 5 quick questions for upvote! THanks ensure correct please.

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1. Which of the following items are part of a business's set of financial statements? a. Income statement b. Balance sheet c. Statement of cash flows d. Both a. and b. above e. a., b., and c. above Answer: _____ 2. True or False: The requirement to provide financial accounting information is driven by the need for outside stakeholders (primarily investors) to have reliable information about the financial status of an organization. a. True b. False Answer: _____ 3. True or False: The set of rules and regulations that govern the content and format of financial statements is called Government Acceptable Procedures (GAP). a. True b. False Answer: _____ 4. Which of the following statements about cash versus accrual accounting is most correct? a. In cash accounting, an event is recognized when a cash transaction occurs. b. In accrual accounting, an event is recognized when a cash transaction occurs. c. Most large healthcare organizations use cash accounting. d. Most small healthcare organizations use accrual accounting because it closely matches statements required for income tax purposes. e. In cash accounting, an event is recognized when the obligation for a cash transaction is created. Answer: _____ 5. Which of the following statements about the income statement is most correct? a. It has several alternative names, including the statement of liabilities. b. It reports the financial status of an organization as of a single point in time. c. It reports the economic profitability of an organization. d. Its three major sections are operating costs, nonoperating costs, and total (net) costs. e. Income statements are always prepared annually, but never for shorter periods (for example, quarterly). Answer: _____ 6. Which of the following statements about gross and net patient service revenue is most correct? a. Gross revenue reports revenue based on chargemaster prices. b. Net revenue is gross revenue less discounts and charity care. c. Net revenue is gross revenue less discounts, charity care, and bad debt losses. d. Both a. and b. above are correct. e. Both a. and c. above are correct. Answer: _____ 7. True or False: Under accrual accounting, all revenues reported on the income statement represent cash collections. a. True b. False Answer: _____ 8. True or False: Under accrual accounting, all expenses reported on the income statement represent cash costs. a. True b. False Answer: _____ 9. Which of the following statements about income statement expenses is most correct? a. Supplies are expensed (shown) on the income statement when purchased. b. Supplies are expensed (shown) on the income statement when consumed (used to provide patient services). c. All lease expense is reported on the income statement. d. Both a. and c. above are correct. e. Both b. and c. above are correct. Answer: _____ 10. Which of the following statements co.

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Give short answers to the following questions: (16) i. Who is an accountant? ii. Describe various roles and activities that accountants perform. iii. What type of duties does a controller perform? iv. What is a double entry system? Outline the steps involved in Double entry system. v. What is the meaning of ‘Debit’ and ‘Credit’ in accounting? vi. What is meant by ‘Hybrid basis’ accounting? How the entries are recorded using this method? vii. What is the difference between ‘Real Accounts’ and ‘Personal Accounts’? viii. How do we record the entries using cash basis accounting method Solution i) Accountant: Accountant is a person who has the the kwoledge of Accounting. He records business transactions on behalf of an organization, He reports the company performance to management, and prepares financial statements(profit & loss account,balance sheet, notes to accounts etc). (ii)Examples of various functions performed by accountant iv)Double entry system: Double entry system of book-keeping has emerged in the process of evolution of various accounting techniques. It is the only scientific system of accounting. According to it, every transaction has two-fold aspects–debit and credit and both the aspects are to be recorded in the books of accounts. For example, if a business acquires something then either it must have been given by someone or it must have been acquired by giving up something. On purchase of furniture either the cash balance will be reduced or a liability to the supplier will arise. This has been made clear already, the Double Entry System is so named since it records both the aspects. We may define the Double Entry System as the system which recognises and records both the aspects of transactions. This system has proved to be systematic and has been found of great use for recording the financial affairs for all institutions requiring use of money. V)Debit and Credit In single line it is impossible to explain/understand, you need to understand the total concept because entire accounting is depends on debit and credit . accounting equation. Assets = Liabilities + Capital or Assets – Liabilities = Capital i) Increases in assets are recorded on the left-hand side and decreases in them on the right-hand side; and (ii) in the case of liabilities and capital, increases are recorded on the right-hand side and decreases on the left-hand side. When two sides are put together in T form, the left-hand side is called the ‘debit side’ and the right hand side is ‘credit side’. When in an account a record is made on the debit or left-hand side, one says that one has debited that account; similary to record an amount on the right-hand side is to credit it. From the above, the following rules can be obtained: (i) When there is an increase in the amount of an asset, its account is debited; the account will be credited if there is a reduction in the amount of the asset concerned : Suppose a firm purchases furniture for ` 800, the furniture account will.

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