DEVRY HSM340 WEEK 2 QUIZ

TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):

Income statement

Statement of retained earnings

Balance sheet

Statement of cash flows

Report of management

Question 2. Question :

(TCO 2) Two major methods of asset valuation are:

: historical cost and future cost

historical cost and acquisition cost

historical cost and replacement cost

acquisition cost and future cost

Question 3. Question :

(TCO 2) _____ is the most important financial metric to review to determine long-term financial viability.

Return on equity

Total margin

Days cash on hand

Hospital cost index

None of the above

Comments:

Question 4. Question :

(TCO 2) What should be a firm's primary long-term financial objective?

Profit growth

Debt growth

Asset growth

Equity growth

Question 5. Question :

(TCO 2) Explain the difference between the accrual basis of accounting and the cash basis of accounting.?

Question 6. Question :

(TCO 2) What is an accounting entity?

Question 7. Question :

(TCO 2) The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so?

Question 8. Question :

(TCO 2) Define and describe the purpose of fund accounting (now called net assets).