accounting homework assignment mcqs

if an organization’s Board of Directors were to set aside assets to be used for replacement of plant and equipment, where would this be reflected on the balance sheet?
A. Assets Limited as to Use
B. Temporarily Restricted Net Assets
C. Permanently Restricted Net Assets
f the total book value of the assets of the accounting entity is $4,350,000, and the total liabilities of the accounting entity are $1,235,000, the stockholder’s equity in the accounting entity is:

A. $5,585,000
B. $3,115,000
C. $2,470,000
D. none of the above
D. Liability
E. none of the above
A hospital incurs $10 million of cost to treat Medicaid patients and receives $7 million in payment. Actual charges for these Medicaid patients were $20 million. The net community benefit expense that would be reported in Schedule H of IRS Form 990 would be?
A. $10 million
B. $7 million
C. $3 million
D. None of the Above

You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and an annual increase in replacement cost of 10 percent, what capital charge per procedure should the hospital levy to provide for replacement cost in the second year? (Ignore financing costs or investment income offsets.)

Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)

Account

Balance

Gross plant & equipment

$6,000,000

Accounts payable

130,000

Inventories

100,000

Other current liabilities

70,000

Net accounts receivable

650,000

Accrued expenses

100,000

Accumulated depreciation

200,000

Long-term debt

5,000,000

Cash

210,000