1) In the case of purchasing equipment, the purchase could take place by
A. Financing all of the purchase
B. Paying cash for all of the purchase
C. Financing only part of the purchase
D. All of the above
E. None of the above
2) If departments are designated as cost centers, reports are generally distributed as
follows:
A. The cost center manager receives the cost centers (departments) reports
B. The director in charge of multiple cost centers receives a larger report
C. The chief executive officer receives a total report of all cost centers
D. All of the above
E. None of the above
3) The Town Center Clinics physician group has contracted with various managed care
plans. For visit code 99213, Plan A has contracted to pay $55.00, Plan B has contracted
to pay $39.00, and Plan C has contracted to pay $46.00. (These rates are examples
only.) The variation in amounts paid by managed care plans for this visit code is:
A. Commonly accepted in healthcare today
B. Unusual and not a commonly accepted method
C. Considered to be a survival method
D. None of the above
4) What method provides a result that can be thought of as a kind of break-even point
for investment purposes?
A. The payback period method
B. The unadjusted rate of return method
C. The internal rate of return method
D. None of the above
5) The type of proposal affects its:
A. Size
B. Scope
C. Coordination with the strategic plan
D. A & B
E. A & C
F. B & C
6) Placing the regression line through statistical analysis is called the least-squares
method. Least squares means that the sum of the squares of the deviations from plotted
points to regression line is:
A. Larger than would occur from any other way the line could be fitted to the data
B. Smaller than would occur from any other way the line could be fitted to the data
C. The best fit
D. A & B
E. A & C
F. B & C
7) Healthcare finance can be described as a method of getting money in and out of the
business. Which of these descriptions is correct?
A. Getting money in represents revenues B. Getting money out represents expenses
C. Getting money in represents outflow
D. Getting money out represents inflow
E. A & B
F. A & C
G. B & D
H. All of the above
8) How many of the following statements about financial projections are correct?
Projections:
A. Are different than forecasts
B. Are views into the future
C. Are retrospective
D. A & B
E. A & C
F. B & C
G. All of the above
9) Major deductions from revenue include:
A. provision for bad debts
B. contractual allowance
C. charity service
D. all of the above
10) An alternative computation for Return on Total Assets is:
A. Net Income divided by total assets
B. Net income divided by total net worth
C. Either of the above
D. Neither of the above
11) The forecasted or projected periods of time for high-tech equipment:
A. Often cover a short period such as three to five years
B. Often cover a long period such as ten years
C. Often are in accordance with your own organizations acceptable standard length of
time for such forecasts or projections
D. A & C
E. B & C
F. All of the above
12) Present value tables are also called look-up tables because one can look-up the
answer.
A. Correct
B. Not correct
C. Not applicable
13) In order to compute depreciation by the Units of Production (UOP) or Units of
Service (UOS) method, the following information must first be obtained:
A. Time period (for example, the number of years) over which depreciation will be
recognized
B. Number of units of production or service occurring during that time period
C. Total equipment cost to be depreciated
D. All of the above