Study Guide Chapter 9 PDF

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This is a study guide for chapter 9....

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Study Guide for Chapter 9 This study is not turned in and will not receive a grade. It is provided for you to better know/understand the information in the chapter and a tool to study for Quiz 2.

1. What are the 3 types of accounting and what is the purpose of each type? 2. What is GAAP? And why is it important? 3. State 5 differences between Financial and Managerial Accounting. 4. What are the primary and secondary qualities important for your financial information to have in order to be communicated well to and be understandable by your staff? 5. State some differences between Cash Accounting and Accrual Accounting. 6. What is meant by depreciation? 7. State 4 reasons why accrual accounting is more often used by group practices. 8. Why is the MGMA Chart of Accounts important to a group practice? 9. What is the difference between a journal and a ledger? 10. As the group practice manager, you are responsible for internal controls needed to ensure your financial statements are accurate and comply with the law. Describe steps you can take to ensure your internal controls do what you need them to do. 11. List the different types of budgets. What is each used for? 12. Calculate a straight line depreciation for the following item: a. Your practice is buying a new glaucoma test machine for $75,000. You do not need to make any modifications to the building/office and your insurance will stay the same. Freight charges are $250. You expect to use the machine for 5 years and then salvage it for $1,000. What is the depreciable amount each year you can show on the balance sheet?...