HAC Healthcare Fixed Assets & Depreciation 3

Question 1

Under Medicare cost reporting, which of the following is NOT classified as a capital-related cost?

Accepted Answer

Operating room supply costs

Answer

Operating room supplies are routine operating costs, not capital-related costs; CMS defines capital costs as depreciation, interest on capital debt, and lease costs for capital equipment.

Question 2

A change in the estimated useful life of a depreciable healthcare asset is accounted for as:

Accepted Answer

A change in accounting estimate applied prospectively

Answer

Under ASC 250, a change in useful life is a change in accounting estimate and is applied prospectively to current and future periods without restating prior periods.

Question 3

Which of the following items would NOT typically appear in a healthcare organization's fixed asset register?

Accepted Answer

Patient utilization statistics per procedure

Answer

Patient utilization statistics are clinical operational data and are not components of a fixed asset register, which tracks the physical and financial attributes of assets.

Question 4

The 'half-year convention' in depreciation means that:

Accepted Answer

All assets acquired or disposed of during the year receive only a half-year of depreciation in that year

Answer

The half-year convention assumes all asset acquisitions and disposals occur at the mid-point of the year, so only half a year of depreciation is taken in the year of purchase or disposal.

Question 5

A hospital performs a periodic physical inventory of its fixed assets primarily to:

Accepted Answer

Verify the asset register is accurate and identify ghost or missing assets

Answer

Physical asset inventories reconcile actual assets on hand to the register, identifying ghost assets (disposed but still on books) and unrecorded disposals.

(HAC) Healthcare Accounting Certification Practice Test

(HAC) Healthcare Accounting Certification Practice Test

HAC Healthcare Fixed Assets & Depreciation 3