Most hospitals and healthcare organizations use accrual accounting which requires that revenue is recognized when services...
Most hospitals and healthcare organizations use accrual accounting which requires that revenue is recognized when services are performed (regardless of when the cash is collected) and expenses are recognized when resources are consumed in providing a service (regardless of when cash is paid).
Group of answer choices
True False
Homework Answers
Answer
--Statement is TRUE.
--Revenue is recognised when earned, whether cash is received or
not.
--Expenses are recognised when incurred, whether cash has been paid
or not.
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Most hospitals and healthcare organizations use accrual
accounting which requires that revenue is recognized when services...
Under accrual accounting, when is revenue recognized? When is expense recognized? Under cash accounting, when is...
Under accrual accounting, when is revenue recognized? When is expense recognized? Under cash accounting, when is revenue recognized and when is expense recognized? FASB (Financial Accounting Standards Board) requires the use of which basis of accounting, accrual or cash?
1) If a company is using accrual basis accounting, when should it record revenue? A) when...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? a. Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? a. Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. b. Patient service revenue is recognized when payment is received by the hospital from a third-party payer. c. Salaries expense is recognized when payroll checks are written. d. Patient service revenue is recognized when healthcare services are provided. e. Statements a., c., and d. are all correct.
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. O Patient service revenue is recognized when payment is received by the hospital from a third-party payer. O Salaries expense is recognized when payroll checks are written. 0 Patient service revenue is recognized when healthcare services are provided. O Statements a., c., and d. are all correct.
What is the purpose of the accrual basis of accounting? Multiple Choice Recognize revenue when it...
What is the purpose of the accrual basis of accounting? Multiple Choice Recognize revenue when it is collected from customers. Match assets with liabilities during the proper accounting period. Recognize expenses when cash disbursements are made. Recognizing revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands.
Depreciation of capital assets is not recognized as an expense in a Special Revenue Fund, but...
Depreciation of capital assets is not recognized as an expense in a Special Revenue Fund, but it is recognized as an expense in an Internal Service Fund. Select one: True False Revenue is recognized in governmental-type funds when it is earned. Select one: True False Under the modified accrual basis of accounting, expenditures are generally recognized in the period that goods and services are received, but there are a number of exceptions to that rule. Select one: True False
The accrual basis of accounting recognizes A. Revenue when cash is received from customers B. Expenses...
The accrual basis of accounting recognizes A. Revenue when cash is received from customers B. Expenses when paid C. Revenue when all or a substantial portion is performed D. Revenue when contracts are signed
Under the accrual basis of accounting, the expense for uncollectible accounts is only recorded when specific...
Under the accrual basis of accounting, the expense for uncollectible accounts is only recorded when specific accounts are actually written off. true or false When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid. true or false Under the accrual basis of accounting, only income that has been earned appears on the income statement. true or false
Which of the following statements are true under the accrual basis of accounting?
Which of the following statements are true under the accrual basis of accounting? Expenditures for expenses that benefit future periods are initially recorded as assetsDividends paid reduce income for the year.Revenue is recognized when performance is complete and collection is reasonably assured.Making sales near the end of the year that are not delivered by the end of the year will increase reported income for the year.Revenue is only recognized when cash is received since there is uncertainty until collection occurs.Expenses are...
The accrual basis of accounting recognizes expenses when cash is paid. True or False? Question 13...
The accrual basis of accounting recognizes expenses when cash is
paid. True or False?
Question 13 2 pts The accrual basis of accounting recognizes expenses when cash is paid. O True O False
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. O Patient service revenue is recognized when payment is received by the hospital from a third-party payer. O Salaries expense is recognized when payroll checks are written. 0 Patient service revenue is recognized when healthcare services are provided. O Statements a., c., and d. are all correct.
What is the purpose of the accrual basis of accounting? Multiple Choice Recognize revenue when it is collected from customers. Match assets with liabilities during the proper accounting period. Recognize expenses when cash disbursements are made. Recognizing revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands.
Depreciation of capital assets is not recognized as an expense in a Special Revenue Fund, but it is recognized as an expense in an Internal Service Fund. Select one: True False Revenue is recognized in governmental-type funds when it is earned. Select one: True False Under the modified accrual basis of accounting, expenditures are generally recognized in the period that goods and services are received, but there are a number of exceptions to that rule. Select one: True False
The accrual basis of accounting recognizes expenses when cash is
paid. True or False?
Question 13 2 pts The accrual basis of accounting recognizes expenses when cash is paid. O True O False
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