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Study Resources (Accounting)

48.              (Journal entries using funds) Inner City Compassion, Inc. (ICC) solicits donations to provide shelter and counseling to abused children and adults. It also sponsors research into the causes of abuse. To account for its activities, ICC uses an unrestricted current fund (UCF), a restricted current fund (RCF), an endowment fund.
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Multiple Choice 1.              Which of the following statements is generally true about the basis of accounting used by governmental and not-for-profit hospitals? a.              both use the full accrual basis of accounting b.              both use the modified accrual basis of accounting c.              governmental hospitals use the modified accrual basis of accounting and not-for-profit hospitals use.
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25.              Elsie owns a small business. At the end of the month, Elsie needed to make adjusting entries to prepare statements on the accrual basis. Which two of the following six possibilities occurred as a result of each of the following adjustments - an asset increased, an asset decreased, a.
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11.              In response to a fund-raising campaign, an electric utility provides free electricity to a not-for-profit entity. How should the not-for-profit entity report this gift in its statement of activities? a.              It should not be reported in the statement. b.              It should not be reported on the face of the statement, but.
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30.              (Analyzing a governmental entity's financial statements) The following data comes from the 2013 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete. General Fund - Balance Sheet Elements Cash$1,200,000 Short-term investments405,000 Property taxes receivable - delinquent282,000 Due.
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  Problems 43.              (Identifying the net asset classifications and funds used for transactions by NFPOs) The following transactions pertain to the activities of the Whitt Shakespeare Company (WSC), a not-for-profit entity. For each transaction, state which classification of net assets is affected: unrestricted, temporarily restricted, or permanently restricted. In addition, state the fund.
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11.              A federal agency received allotments of $95,000. It does not use commitment accounting. It placed three orders totaling $70,000, received all the supplies ordered, and approved invoices totaling $73,000 for the three orders. It then consumed $55,000 of those supplies. It then placed another order for $12,000, but the.
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31.              In August, 2013, a publisher receives a check for $120 from a subscriber for a one-year subscription to "Willie," a monthly magazine. The subscriber will receive the first magazine in September. Prepare: (a) the journal entry to record the amount received in August; and (b) the adjusting entry to.
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43.(Preparation of Government-Wide Financial Statements) On the following page is the government-wide adjusted trial balance for the Town of Catlettville as of June 30, 2013, the end of the fiscal year.  The adjustments needed to convert accounting information from the current financial resources measurement focus and modified accrual basis of accounting.
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23.              (Journal entries - set of transactions) The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products. Prepare budgetary and proprietary entries to record the following transactions for the month of October, 2013. a.             .
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  Problems 20.              (Matching) Match the entity that takes the action with the nature of the action taken by putting the number of the action taken (second column) next to the letter for the entity (first column). Entity that takes action Nature of action taken a. Congress1. Allots b. Office of Management and Budget2. Appropriates c. Treasury.
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28.(Financial statement analysis of a governmental enterprise hospital) Following is a trial balance (with 000 omitted for simplification) showing the accounts of Beta Hospital at December 31, 2013. Using the information from the trial balance, analyze Beta's financial statements by answering the following questions. Show all calculations. a.              What is the current.
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42.              (Journal entries for a hospital's General Fund) following transactions and events in the Hospital's General Fund. a.              Third-parties and direct-pay patients were billed $4,200,000 at the hospital's established billing rates. b.              The billings in transaction a. included the following: (1)              Services provided to charity care patients totaled $170,000; and (2)              Services were provided to.
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45              (Journal entries to record transactions) Prepare journal entries to record the following transactions of Weatherford Teen Foundation, Inc. (WTFI), a not-for-profit entity that provides counseling, training, and other programs for young people. WTFI accounts for all transactions in a single fund, recording them so as to identify the three classes.
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Learning Objective 1-3 1) Which of the following is not a way for a company to improve customer response time? A) An increase in capacity of bottleneck operations. B) Decrease in response time to consumer requests. C) Faster delivery procedures. D) Produce the product quicker. E) Effective management accounting information. 2) Trader Joe's is known for delivering.
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Learning Objective 1-1 1) Managers use management accounting information to do all of the following except: A) collect. B) analyze. C) perform. D) categorize. E) summarize. 2) Managers make cost management decisions to increase the value of products and services they provide to customers and to achieve organizational goals. Which of the following is not an.
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47.              (Discussion problem - contributions to collections) Art on Wheels is a newly-formed not-for-profit corporation. Its purpose is to promulgate public appreciation of 19th century American artists. It plans to solicit works of art from donors and to display them both in a museum and in a specially constructed bus that.
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8) Complete a performance report for the month of October, 2012, for the Management Scientist Quarterly, a national publication, showing four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual Result minus Budgeted Amount; 4) Difference as a Percentage of Budgeted Amount. Compute the difference of the actual result.
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Multiple Choice 1.              What is the major purpose of the statement of net position from a financial analysis perspective? a.              to describe the major sources of revenue and types of expense b.              to show the inflows and outflows of cash during the reporting period c.              to show whether the entity was efficient and effective.
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Multiple Choice 1.              Which of the following formulations of the accounting equation is incorrect? a.              assets - liabilities = equity b.              assets = liabilities + equity c.              assets = liabilities + opening equity + (revenues - expenses) + (owner additions to – withdrawals from equity) d.              assets = liabilities - equity 2.              John pays cash to.
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11.              Suzy Queue hires a salesperson for her business. Suzy agrees to pay the salesperson a commission of 10 percent of sales. By the end of the first month, the salesperson has done $50,000 of sales. Suzy wants to prepare accurate financial statements at the end of the month, but.
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  Problems 26.              (Assessment of a hospital's accounts receivable collection efficiency) Assess Plains Regional Hospital's accounts receivable collection efficiency based on the following set of facts: a.              Days' revenue in patient accounts receivable at December 31, 2012, for Plains Regional Hospital - 76 days b.              Extracts from Plains Regional Hospital's calendar year 2013 financial statements: Net.
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46.              (Journal entries involving net asset reclassifications) Prepare journal entries to record the following transactions of Parker County Outreach (PCO), a not-for-profit entity providing basic services to the poor. Also, show the fund in which the entry is recorded.  PCO uses an unrestricted current fund (UCF) and a restricted current fund.
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34.              (Preparation of financial statements) (This problem is based on the transactions for problem 33.) Following is a trial balance for LilyRose Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31,.
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22.              (Journal entries - set of transactions regarding contracts) The Federal Bureau of Building Construction (BBC) receives an annual appropriation to perform construction activities. BBC does not use commitment accounting; instead, it obligates funds upon the award of contracts Prepare budgetary and proprietary journal entries to record the following transactions. a.              BBC.
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31.              A donor had previously donated $2,000 to a not-for-profit entity, stipulating that the gift must be used to finance the annual Fall Harvest festival. The festival is held and the gift is used for the stipulated purpose. Which of the following best describes the effect of the journal entries.
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Learning Objective 1-4 1) Which of the following is not true about a managerial accountant that links rewards to performance? A) Not used to motivate managers. B) Allows companies to charge premium prices. C) Should only be based on financial information. D) Recognizes managers for a well-done job. E) Rewards managers by salary, bonuses, and performance. 2).
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  Problems 23.              Tina opens a business to do small printing jobs. Her first few transactions are shown below. For each of them, state which two of the following six possibilities occurred as a result of each transaction - an asset increased, an asset decreased, a liability increased, a liability decreased, equity.
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11.              A not-for-profit hospital provided charity care. The value of the hospital's service for the year, at its normal billing rates, was $4 million. How should the hospital report the charity care services in its financial statements? a.              include the $4 million as part of patient service revenue and report an.
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41.              (Entries to prepare government-wide financial statements - revenue and expense accruals) For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial statements. a.              To prepare its government-wide financial statements for the year ended December 31,2012, the.
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Multiple Choice 1.              In the federal government, which organizations make appropriations and which make apportionments? a.              The Congress makes appropriations, and department heads apportion the appropriations to individual agencies or divisions within the department. b.              The Congress makes appropriations, and the Treasury Department appropriates to individual departments the total amount apportioned by the.
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36. (Preparation of financial statements) (This problem is based on the transactions for problem 35.) Following is a trial balance for Ricardo Sanchez's Auto Repair as of January 31, 2013. Prepare an (1) income statement and a (2) statement of changes in owner's equity for the month ended January 31, 2013, and.
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11.              What can a financial analyst learn from a hospital's number of days' revenue in receivables? a.              the hospital's accounts receivable collection efficiency b.              the average length of stay of patients in the hospital c.              the average daily occupancy rate of the hospital's beds d.              the proportion of hospital beds occupied by patients covered.
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21.              The Bob Buckham Senior Center, a not-for-profit entity, serves a hot meal to senior citizens every Friday evening. All the food is donated by a local supermarket. All the food preparation and serving is done by local volunteers. If the Center had to pay for the food, it would.
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46.              (Preparing a not-for-profit hospital operating statement) Whitt Valley Hospital is a not-for-profit initial care facility.  Prepare a Statement of Operations for Whitt Hospital using the following information for its calendar year ending December 31, 2012:   Third-parties and direct-pay patients were billed $6,500,000 at the hospital's established billing rates   The hospital.
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11) The ________ ________ is an administration function that includes the human resource management function of training front-line workers. A) design function B) distribution function C) production function D) marketing function E) customer service function 12) The ________ function is the function of analyzing, reporting, and accounting for those resources spent in different marketing channels; while.
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Learning Objective 1-2 1) Strategic cost management describes cost management that: A) is not consistent with organizational goals. B) does not relate to ethical practices. C) has no focus on the organization. D) specifically focuses on strategic issues. E) does not specifically focus on strategic issues. 2) Which of the following is not one of the six.
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31.              Differences between a hospital's established rates and amounts negotiated with third-party payers are referred to as: a.              contractual adjustments b.              unrecovered costs c.              equity adjustments d.              restricted revenues 32.              Which of the following is reported as an expense by not-for-profit hospitals? a.              charity care b.              bad debts c.              contractual adjustments d.              volunteer and employee discounts 33.              The accounting and.
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27.              State whether each of the following statements is true or false. Explain the true statements and discuss why the false statements are false. a.              A debit always results in increasing the balance in an account. b.              As expenses increase, the equity of an entity will decrease. c.              Posting is the process of.
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43.(Accounting for donations and donor-restricted and board-designated resources) A not-for-profit hospital uses the following funds to account internally for its resources: General Fund (GF); Specific Purpose Funds (SPF); Plant Replacement and Expansion Funds (PREF); and Endowment Funds (EF). The hospital is establishing a special trauma unit for brain-related injuries, and is.
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35.              (Transaction analysis, journal entries, and adjusting journal entries) Ricardo Sanchez repairs automobiles. He started calendar year 2013 year with the following account balances: Cash - $5,000; Accounts receivable - $30,000; Allowance for uncollectible accounts - $3,000; Repair parts inventory - $23,000; Equipment - $60,000; Accumulated depreciation - $25,000; Accounts payable.
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21.              After it prepares its financial statements, a hospital has historically received malpractice claims for events occurring before the balance sheet date. How should the hospital handle these incurred but not reported (IBNR) claims its financial statements? a.              take no action until it actually receives claims. b.              disclose, in the notes to.
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29.              Prepare journal entries to record the following transactions regarding a fire insurance policy purchased by Chang Electronics. Chang's business operates on a calendar-year basis. a.              April 1, 2013 - Chang arranges to buy fire insurance. He receives a bill for $10,000 for an insurance policy that covers the period April.
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44.              (Use of funds) Andy Kelly Hospital uses the following types of funds for internal purposes: General Fund; Specific Purpose Funds; Plant Replacement and Expansion Fund; and Endowment Fund. State which fund (or funds) would be used to account for each of these transactions or events. a.              Ms. Shaw makes a gift.
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29.              (Analyzing and assessing the implications of a government's account balances) Following is a pre-closing trial balance of a village's General Fund at December 31, 2013. The amount shown as Fund balance (unassigned) has not changed since the year started. The amount shown as appropriations includes the amounts appropriated for transfers. .
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  Problems 41.              (Journal entries for patient service revenues; computation of net patient service revenue) Prepare journal entries to account for the following transactions for Cort Hospital. Also, compute the net service revenue to be reported in the Hospital's statement of operations. a.              Cort provided services to patients during the year, billing a total.
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Multiple Choice 1.              For not-for-profit entities, external financial reporting focuses on: a.              individual funds b.              fund groups c.              the organization as a whole d.              major funds 2.              When a not-for-profit entity's funds are classified as restricted, who has imposed the restrictions? a.              the entity's board of trustees b.              donors c.              the bondholders d.              government regulators 3.              Under which of the following.
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33.              (Transaction analysis, journal entries, and adjusting journal entries) Lillian Rose opened a facility to provide day care for children. The following transactions occurred during the month of July 2013, the first month of business. a.              Lillian Rose invested $10,000 of her personal funds in a business, to be known as LilyRose.
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