1) Revenue amounts estimated to be uncollectible are:
A. Considered to be deductions from revenues
B. Are recorded on the organizations books as deductions from revenue
C. Considered to be part of the revenue stream
D. Are never recorded on the organizations books
E. A & B
F. C & D
2) In the illustrated example of variance analysis for an infusion center, the flexible
variance analysis is divided into a flexible budget variance of $11,200 (unfavorable)
and a sales volume variance of $12,000 (favorable). Which of these variances relates to
the number of procedures performed?
A. Flexible budget variance
B. Static budget variance
C. Sales volume variance
D. None of the above
3) The ratios adopted in healthcare financial management are typically:
A. Uniform measures
B. Convenient measures
C. Both of the above
D. Neither of the above
4) Basic types of payment after service is delivered include:
A. Fee for service
B. Discounted fee for service
C. Predetermined per-person payment
D. A & B
E. A & C
F. B & C
5) Average annual net income divided by original investment amount equals:
A. present value
B. rate of return
C. budget variance
6) Assume your team is preparing a SWOT matrix concerning the ICD-10 adoption
issue, and they are now considering all the governmental compliance requirements to be
met. Where would you place these compliance requirements within the SWOT matrix?
In the:
A. Strengths
B. Internal Weaknesses
C. External Opportunities
D. External Threats
E. Any of the above
F. None of the above
7) Which of the following statements about an Health Information Exchange (HIE) are
correct?
A. The HIE system can be centralized
B. The HIE system cannot be decentralized
C. The HIE system typically requires a Health Information Organization (HIO) to
oversee it
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
8) In the static budget variance analysis illustrated example for an open imaging center,
the amounts are shown as either favorable (F) or unfavorable (U) for:
A. Revenue
B. Expense
C. Operating income
D. Number of procedures performed
E. A & B only
F. A, B & C only
G. All of the above
9) Benefits of the Medicare and Medicaid EHR Incentive Program may include
reductions in how many of the following:
A. Medical errors
B. Medical recordkeeping costs
C. Nursing staff costs
D. A & B
E. A & C
F. B & C
G. All of the above
10) Certain lab technology expenses have been incurred. Because these expenses are for
the particular benefit of the radiology department, they are considered to be:
A. Direct costs
B. Indirect costs
C. Neither of the above
11) Sam is responsible for generating revenue for the Green Tree Nursing Center. He
also fills in for the office manager on alternate weekends. Is Sam managing a
responsibility center?
A. Yes
B. No
C. Not applicable
12) The manager is responsible for a particular set of activities in which type of
responsibility center?
A. The profit center
B. The cost center
C. The revenue center
D. A & B
E. B & C
F. None of the above
13) Under the payback period concept, it is often prudent to:
A. Run more than one payback period computation
B. Base multiple runs on sets of different circumstances
C. Change only the interest rate on different runs
D. A & B
E. A & C
F. B & C
G. None of the above
14) The third step to annualize this expense for Midtown Clinic would be to:
A. Add $2,000 plus $200 equals $2,200
B. Add $2,000 plus $400 equals $2,400
C. Add $2,000 plus $400 equals $2,800
D. None of the above
15) Reports prepared in accordance with generally accepted accounting principles:
A. are intended for third party use
B. are not necessary for managerial accounting for internal purposes
C. both A and B
D. neither A nor B
16) A meaningful electronic health records user, in addition to using certified EHR in a
meaningful manner, must also comply with how many of the following requirements?
The provider must:
A. Be connected in a manner that provides for the electronic exchange of health
information to improve the quality of health care
B. Be connected in a manner that provides for the electronic exchange of health
information to improve the organizations health statistics outcomes
C. Report on measures using EHR
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
17) Which of the following are reasons for capital asset spending on new equipment?
A. To improve productivity in the Emergency Department
B. To comply with federal requirements in the Pharmacy Department
C. To comply with new state legislative requirements in the Clinic
D. A & B
E. A & C
F. B & C
G. All of the above
18) The MidTown Nursing Facility has fixed costs amounting to $200,000. At an
occupancy rate of 100 patients, the fixed cost per patient amounts to $2,000. In another
way to think about fixed costs, if the administrator can increase the occupancy rate to
125 patients, will the fixed cost per patient then:
A. Increase
B. Decrease
C. Neither of the above
19) According to the illustration of Leadership Decision Stages process flow, the Makes
A Decision stage will result in:
A. A positive decision (Yes: will adopt and implement)
B. A negative decision (No: will not adopt)
C. Either of the above
D. None of the above
20) Using your computation of LIFO cost of goods sold from the previous question, and
further assuming that Sales equal $500, what is the gross profit amount?
A. $300
B. $250
C. $200
D. None of the above
21) The indicator that is more severe than the liabilities to fund balance ratio is
described as:
A. Total assets to fund balance
B. Net worth (fund balance) to long-term debt
C. Long-term debt to net worth (fund balance)
D. None of the above
22) The current ratio is typically measured against a standard of:
A. 1 to 1
B. 2 to 1
C. 1 to 2
D. None of the above
23) The scheduled position method is often used when forecasting new products and
services.
A. Yes
B. No
C. Not applicable
24) If departments are designated as cost centers, it is logical because:
A. The organizations lines of authority are typically organized by department
B. Departmental cost centers can then be grouped into larger groups that have
something in common
C. Both of the above
D. Neither of the above
25) Net increase (decrease) in cash and cash equivalents belongs on the:
A. Balance sheet
B. Statement of revenue and expenses
C. Neither of the above