1) The manager with a clinical viewpoint generally:
A. May be responsible for service delivery
B. May have direct interaction with patients
C. Is responsible for clinical outcomes
D. All of the above
2) Operating budgets generally deal with:
A. long-term revenues
B. short-term expenses
C. the next year (a 12-month period)
D. all of the above
E. B and C only
F. A and B only
3) The individual transaction:
A. Creates the original record
B. Is recorded into a subsidiary journal
C. Ends the progress of a transaction information flow
D. A & B
E. A & C
F. B & C
G. None of the above
4) Examples of assets include:
A. inventory
B. land
C. accounts receivable
D. cash
E. all of the above
5) If a contractual agreement to pay for services uses varying assumptions about the
group to be served:
A. Significant variation in such assumptions will affect the rates that are set for these
services
B. The use of such group assumptions indicates this is an agreement to pay before
service is delivered
C. The use of such group assumptions indicates this is an agreement to pay after service
is delivered
D. A & B
E. B & C
F. None of the above
6) The purpose of mission, vision and value statements is not realized if the message is
not understood. How many of the following are acceptable methods of transmitting the
message?
A. Explain the terms that are used
B. Introduce the message
C. Emphasize the area of focus
D. A & B
E. A & C
F. B & C
G. All of the above
7) Regarding percentage-based measures of meaningful use, what following questions
are correct?
A. Are we excluded from the measure?
B. What makes up the denominator of the measure?
C. What makes up the numerator of the measure?
D. A & B
E. A & C
F. B & C
G. All of the above
8) When calculating the payback period method for the acquisition of equipment, the
most critical assumption is:
A. Useful life
B. Volume of usage
C. Interest rate
D. All of the above
E. None of the above
9) It is required that the names of hospitals and physicians who are meaningful EHR
users be posted on the CMS web site. In terms of incentives, which of the following
statements is more likely to be correct? Management may believe that:
A. Appearing on the web site is a positive asset
B. Appearing on the web site is a negative liability
C. Neither of the above
10) Certain types of capital expenditure proposals may sometimes be paired as either/or
choices. Which of the following proposal types could easily be presented as a pair for
such either/or choices?
A. Acquiring new equipment
B. Upgrading existing equipment
C. Replacing existing equipment with new equipment
D. A & B
E. A & C
F. B & C
G. Any of the above
11) Jim, the radiology department director, believes the annual operating budgeting
process is a tool used to increase his department through the addition of staff and
supplies. Susan, the laboratory department director, believes the annual operating
budgeting process is a tool used to control costs. Dr. Smith, the emergency department
director, considers the budgeting process a nuisance and believes he should simply
increase all revenues and expenses by five percent for the coming year to achieve a
budget. Whose viewpoint represents the proper objective for the budgeting process?
A. Dr. Smiths view
B. Jims view
C. Susans view
D. None of the above
12) The term expense:
A. May include the amount of cash expended (or services performed) in consideration
of goods or services received or to be received
B. May include every expired cost that is deductible from revenue
C. Is interchangeable with the term cost
D. All of the above
13) Forecasts are relatively short term.
A. Correct
B. Not correct
C. Not applicable
14) The purpose of an organization chart includes:
A. Indicating how responsibility is assigned to managers
B. Illustrating the structure of the organization
C. Designating the formal lines of communication among and between external
stakeholders
D. A & B
E. A & C
F. B & C
G. All of the above
15) Because of all the implications, management decisions about business loans are
often interwoven with strategic planning.
A. Correct
B. Not correct
C. Not applicable
16) Forecasts also:
A. Reflect future events, projects or operations
B. Are based on a set of hypothetical, assumptions
C. Both of the above
D. Neither of the above
17) On the cost report, the central worksheets for cost finding are:
A. Worksheet A
B. Worksheet A-1
C. Worksheet B
D. Worksheet B-1
E. Worksheet E
F. Worksheets A, A-1 and B
G. Worksheets A, B and B-1
H. Worksheets B and E
18) Hillwood Clinic has borrowed $90,000 from the bank with the following terms:
$20,000 of the this amount to be paid in Year 1, $30,000 to be paid in Year 2, and
$40,000 to be paid in Year 3. Time moves on, and Hillwood meets the terms of the note
in Year 1 . Therefore at the beginning of Year 2 the remaining portion of the loan is now
classified as follows:
A. $70,000 long-term note payable
B. $30,000 short-term note payable plus $40,000 long-term note payable
C. $20,000 short-term note payable plus $50,000 long-term note payable
D. None of the above
19) Situational analysis is particularly appropriate for the analysis of electronic records
system implementation such as ICD-10 because:
A. It allows collaboration among multiple knowledge areas
B. It imposes a discipline that allows a meeting of minds to better occur
C. It is required by CMS
D. A & B
E. A & C
F. B & C
G. All of the above
20) The chart of accounts:
A. outlines the elements of your company in an organized manner
B. maps out account titles with a method of numeric coding
C. is designed to compile financial data in a uniform manner that can be de-coded by
the user
D. all of the above
E. (A) and (B) only
21) A mortgage payable:
A. Is recognized as a liability
B. Typically has a portion recorded as a short term payable
C. Typically has a larger portion recorded as a long term payable
D. May be recognized as an other asset
E. A & B
F. A & C
G. A & D
H. A, B & C
22) Contractual allowances may be entered on the books of:
A. Hospitals
B. Physician offices
C. Both of the above
D. Not applicable
23) Woodside Hospice borrows $10,000 from the bank to make up for a lag in cash
flow due to non-collection of a large account receivable. The loan is to be repaid at the
end of ninety days, when collection of the account receivable is expected. Amblesides
loan is classified as:
A. An accounts receivable reserve
B. An accounts payable debit
C. A short-term note payable
D. None of the above
24) Business management as a discipline for educational purposes began in the United
States in the:
A. 1700s B. 1800s
C. 1900s
D. None of the above
25) The computation of a static budget requires:
A. Three simple calculations
B. Two multi-level calculations
C. One single calculation
D. None of the above
26) Flexible budgeting variance analysis:
A. Was conceived by industry
B. Was subsequently discovered by health care
C. Provides a method to get more information about acquiring departmental equipment
D. A & B
E. A & C
27) In what year do Medicare payment adjustments begin for eligible professionals and
eligible hospitals that are not meaningful users of EHR technology?
A. 2014
B. 2015
C. 2016
D. 2021
E. None of the above
28) A general services expense:
A. Provides services necessary to maintain the patient, but the service is not directly
related to patient care
B. Is necessary for support, but is neither directly related to patient care nor is it a
service necessary to maintain the patient
C. Either of the above
D. Neither of the above
29) Pareto analysis is:
A. An analytical tool
B. Named after an actual person
C. Often summarized by the Pareto rule
D. All of the above
30) Examples of specifications that will need revising due to the change from ICD-9 to
ICD-10 include how many of the following:
A. Data file extracts
B. Analytic software that performs business analysis
C. Analytic software that provides business support
D. A & B
E. A & C
F. B & C
G. All of the above
31) The second step to annualize this expense for Midtown Clinic would be to:
A. Divide the answer from the first step by two
B. Divide the answer from the first step by ten
C. Multiply the answer from the first step by two
D. Multiply the answer from the first step by ten
E. Neither of the above
32) Kaiser Permanente (KP) is one example of how a private sector healthcare
organization has led the way in demonstrating how electronic health records can
successfully be conceived and implemented. In this regard, how many of the following
statements about Kaiser Permanente are most correct?
A. KP is believed to have the largest private sector electronic health record system in
the U.S
B. KP is believed to have the largest private sector electronic health record system in
the world
C. KP has implemented an electronic personal health record application that is
connected to the individual patients electronic medical record
D. KPs electronic personal health record application will also manage prescriptions
E. A, C & D
F. B, C & D
G. C & D
H. None of the above
33) Which of the four major reports is stated at a particular point in time?
A. Balance sheet
B. Statement of revenue and expense
C. Statement of changes in fund balance/net worth
D. Statement of cash flows
34) Allowance for bad debts:
A. Is also known as a provision for doubtful accounts
B. Represents a major type of deduction from revenue classification
C. Both of the above
D. Neither of the above
35) Transition to the new procedure codes provides how many of the following
benefits:
A. Provides detailed descriptions of methodology and approach for procedures
B. Provides detailed descriptions for body parts
C. Precisely defines procedures with detail about body parts, approach, any device used
and qualifying information
D. A & B
E. A & C
F. B & C
G. All of the above