| Which of the following tends to insulate management somewhat from the financial results of poor financial planning? (Pick the best answer.) | | | |
| | A. Capitated rates |
| | B. Cost reimbursement |
| | C. Bundled services |
| | D. Charge payment |
| 5 points | | |
| Question 2 | |
| The cash budget focuses on which of the following major activities: | | | |
| | A. Purchasing of resources |
| | B. Collection |
| | C. Production/sale of service |
| | D. All of the above |
| 5 points | | |
| Question 3 | |
| Which of the following is an element of budgeted financial requirements that is not included in budgeted expenses? | | | |
| | A. Interest expense |
| | B. Increases in working capital |
| | C. Labor expense |
| | D. A and B |
| | E. None of the above |
| 5 points | | |
| Question 4 | |
| A department manager most often uses his or her hospitalsâ financial information for which of the following uses: | | | |
| | A. Assess the financial condition of the hospital |
| | B. Assess the efficiency of operations |
| | C. Evaluate the hospitalâs stewardship |
| | D. Assess the effectiveness of operations |
| 5 points | | |
| Question 5 | |
| 18. You have just advance refunded $50 million of outstanding tax-exempt revenue bonds with $40 million of new debt, which created a gain after considering reimbursement effects of $5.0 million. What could account for this? | | | |
| | |
| | A. Higher interest rate on the refunding issue |
| | B. Lower interest rate on the refunding issue |
| | C. Positive arbitrage on the refunding issue |
| | D. None of the above |
| 5 points | | |
| Question 6 | |
| A not-for profit nursing home has total expenses of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million). The benefit received by the nursing home from the sales tax exemption assuming that pharmacy items are exempt from state sales tax is? | | | |
| | A. $1.4 million |
| | B. $1.26 million |
| | C. $420,000 |
| | D. $480,000 |
| 5 points | | |
| Question 7 | |
| Which of the following is not one of the four critical questions that must be answered for dashboard reporting? | | | |
| | A. What is the firmâs strategic vision? |
| | B. What is most important to the firmâs success? |
| | C. What are the critical drivers that influence performance attainment? |
| | D. What are the most relevant measures that reflect critical driver relationships? |
| 5 points | | |
| Question 8 | |
| What of the following is not one of the characteristics of long-term debt financing? | | | |
| | A. Cost |
| | B. Control |
| | C. Risk |
| | D. Inventory |
| 5 points | | |
| Question 9 | |
| The controller in a hospital is usually responsible for which of the following activities (choose all that apply): | | | |
| | A. Collection of accounts receivable |
| | B. Developing budgets |
| | C. Filing Medicare cost reports |
| | D. Arranging hospital loans |
| 5 points | | |
| Question 10 | |
| The heading of every financial statement should contain the: | | | |
| | A. name, title, and place of business |
| | B. name, title, and specific date of statement |
| | C. name, title, specific date of statement, and unit of measurement |
| | D. title, name, type of ownership, and unit of measurement |
| 5 points | | |
| Question 11 | |
| The Catholic Healthcare Association recognizes which of the following as legitimate areas of community benefit? | | | |
| | A. Bad Debts |
| | B. Unreimbursed Medicare Costs |
| | C. Both A and B |
| | D. Neither A nor B |
| 5 points | | |
| Question 12 | |
| The following is an example of a _____________ budget: âThe budget for the radiology department is different at 90 percent occupancy than at 80 percent occupancy.â | | | |
| | A. rolling |
| | B. forecast |
| | C. flexible |
| | D. fixed |
| 5 points | | |
| Question 13 | |
| Which of the following is not a âprincipleâ of financial accounting? | | | |
| | A. Historical cost |
| | B. Revenue recognition |
| | C. Continuity |
| | D. Matching |
| 5 points | | |
| Question 14 | |
| Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow? | | | |
| | A. Reduces it |
| | B. Increases it |
| | C. No effect |
| | D. All of the Above |
| 5 points | | |
| Question 15 | |
| What should be a firmâs primary long-term financial objective? | | | |
| | A. profit growth |
| | B. debt growth |
| | C. asset growth |
| | D. equity growth |
| 5 points | | |
| Question 16 | |
| A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an): | | | |
| | A. Income statement |
| | B. Statement of retained earnings |
| | C. Balance sheet |
| | D. Statement of cash flows |
| 5 points | | |
| Question 17 | |
| Strategic planning should _________ financial planning. | | | |
| | A. follow |
| | B. precede |
| | C. be contemporaneous with |
| | D. None of the above |
| 5 points | | |
| Question 18 | |
| | | |
| | A. forecasts operating revenues that will be earned during the budget period |
| | B. identifies the amount of service that will be provided by departmental area |
| | C. represents an organization's expected cash inflows and outflows based on the previous years' cash flows |
| | D. identifies operating expenses that are expected to be incurred during the budget period |
| 5 points | | |
| Question 19 | |
| What is net working capital? | | | |
| | A. Current assets less long-term liabilities |
| | B. Current assets less current liabilities |
| | C. The amount of permanent financing required to finance working capital or current assets. |
| | D. Both B and C |
| 5 points | | |
| Question 20 | |
| The working capital cycle looks at which of the following: | | | |
| | A. Obtaining cash |
| | B Turning cash into resources and paying bills |
| | C. billing and collecting revenues earned |
| | D. All of the above |
| 5 points | | |
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