Lesson 2 Quiz

Insurance is $13,200 on the cash-basis report but $1,100 on the accrual report for July. Why? *

The center paid two premiums in July

The annual premium was paid July 1; the accrual report spreads it over 12 months

The accrual report leaves out insurance

The bookkeeper made an error

CCS reimbursement is $34,848 on the cash basis but $27,879 on the accrual basis. What explains the difference? *

More children used CCS in July

The cash figure is June's CCS invoice, paid by the State in late July

EXCELS payments are counted twice

Copays are included only on the cash basis

Which line appears only on the cash-basis report? *

Depreciation

Loan principal paid

Rent

Interest expense

July shows net income of $1,509 (accrual) and net cash flow of $6,616 (cash). Which tells you whether July's operations covered July's costs? *

The cash-basis report

The accrual-basis report

Neither

Both equally

If your bookkeeper keeps cash-basis books, which report will you not be able to get? *

Profit & Loss

Aging accounts receivable

Bank statement

Budget v. Actual