HAC HAC Healthcare Payroll & Compensation Accounting

Question 1

Under FLSA, which healthcare workers are generally classified as exempt from overtime pay requirements?

Accepted Answer

Licensed physicians earning above the salary threshold

Answer

Certified nursing assistants

Answer

Medical billing specialists

Answer

Home health aides

Question 2

A hospital's total compensation expense for the period includes which of the following in addition to gross wages?

Accepted Answer

Employer payroll taxes and benefits costs

Answer

Accounts receivable balances

Answer

Patient revenue adjustments

Answer

Depreciation on medical equipment

Question 3

Which IRS form must a hospital use to report annual wages and withheld taxes for each employee?

Accepted Answer

Form W-2

Answer

Form 1099-NEC

Answer

Form 941

Answer

Form 1095-C

Question 4

When a healthcare facility accrues vacation pay at year-end, which accounting entry is correct?

Accepted Answer

Debit Vacation Expense; Credit Accrued Vacation Liability

Answer

Debit Vacation Expense; Credit Cash

Answer

Debit Accrued Vacation Liability; Credit Vacation Expense

Answer

Debit Prepaid Expense; Credit Vacation Expense

Question 5

A healthcare organization classifies travel nurse agency fees as which type of labor cost?

Accepted Answer

Contract or agency labor (non-employee)

Answer

Productive direct labor

Answer

Fringe benefit expense

Answer

Indirect overhead

Question 6

Which GAAP principle requires a hospital to recognize physician bonus expense in the period the bonus was earned, even if it is paid in the next fiscal year?

Accepted Answer

Matching principle

Answer

Historical cost principle

Answer

Revenue recognition principle

Answer

Conservatism principle