Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Complete and correct financial records are
necessary for:
a. | prompt billing and collection
procedures | b. | professional
financial planning | c. | accurate reporting
of income | d. | All of the above |
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2.
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A system of recording, classifying, and summarizing
financial transactions is called:
a. | filing | b. | accounting | c. | accruing | d. | depreciation |
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3.
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The chronologic record of the medical practice is
the _____ journal.
a. | daily | b. | ledger | c. | disbursement
| d. | monthly |
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4.
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Minor unpredictable expenses should be paid
from:
a. | the regular checking account | b. | the savings account | c. | petty
cash | d. | whatever is most
available |
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5.
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The financial records of any business should always
show:
a. | how much has been collected | b. | how much is owed | c. | how much was
earned in a given period | d. | All of the
above |
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6.
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The disbursement journal should show:
a. | every amount paid out | b. | interest accrued | c. | total
payables | d. | All of the above |
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7.
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Which of the following words or phrases cannot be
used interchangeably with the others?
a. | Capital | b. | Interest | c. | Proprietorship | d. | Net
worth |
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8.
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The “cash basis” system of accounting
used by most physicians means that one:
a. | uses credit as little as
possible | b. | records charges as income when the payment is
received | c. | maintains a simple bookkeeping
system | d. | records expenses when they are
incurred |
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9.
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The purpose of the disbursement journal is to keep
a record of the amount:
a. | in the checking account | b. | owed by the physician | c. | paid out for
various expenses | d. | owed to the
physician |
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10.
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Which accounting system requires the least initial
expense and training to set up and use?
a. | Double-entry | b. | Pegboard | c. | Single-entry | d. | There is very
little difference among the three. |
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11.
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If you summarized a company’s financial
situation in the basic accounting equation, which of the following would be included in the liability
component?
a. | The value of the office equipment
owned | b. | Amounts owed by customers | c. | Amount of cash in the checking account | d. | Amount owed to a supply company |
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12.
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Assets = Liabilities +:
a. | Capital | b. | Interest | c. | Net
Worth | d. | Income |
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13.
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Disbursements in an office might
include:
a. | rent | b. | utilities | c. | dues | d. | All of the
above |
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14.
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Which of the following is not a common summary
report?
a. | Trial balance | b. | Invoice | c. | Statement of
income and expense | d. | Balance
sheet |
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15.
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For every disbursement from the petty cash fund,
what should be completed?
a. | Balance sheet | b. | Invoice | c. | Packing
slip | d. | Voucher |
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16.
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To determine that the books for a business are in
balance, you should perform a(n):
a. | trial balance | b. | balance sheet | c. | cash flow
statement | d. | end-of-day
summary |
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17.
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W-2 forms should be given to all employees before
what date each year?
a. | January 1 | b. | December 31 | c. | January
31 | d. | December 1 |
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18.
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Which of the following records must be available
for review by the IRS?
a. | Social security numbers for
employees | b. | Number of withholding allowances
claimed | c. | Amount of gross salary | d. | All of the above |
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19.
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When the end-of-month accounts receivable figures
agrees with the figure arrived at by adding all the customer account balances, the accounts are said
to be:
a. | false | b. | in balance | c. | out of
balance | d. | matching |
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20.
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The properties owned by a business are
called:
a. | assets | b. | liabilities | c. | equities | d. | accounts |
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