1) CMS identified three types of individuals who would require training on ICD-10,
including physicians, coders and code users.
2) Flowsheets are useful because they portray who is responsible for what piece of
information as it exits the system.
3) The manager is usually responsible for the indirect allocated expenses, but rarely
responsible for the direct traceable expenses.
4) Management as a discipline for educational purposes did not begin in the United
States until after 1900 .
5) Mortgage bonds are typically backed, or secured, by certificates of deposit.
6) For financial reporting purposes, currencies are typically converted using the
U.S.-dollar foreign exchange rates as of a certain date.
7) Under the startup cost capital expenditure budgeting concept, management may
decide that the cost of starting up a new service line or a new program should be
included in the capital expenditure budget as part of the original investment.
8) Product costs are matched with revenue on the basis of the period during which the
cost is incurred.
9) Days Receivables and Days Cash on Hand (DCOH) are both solvency types of
ratios.
10) “Full time equivalent” is a measure to express the equivalent of an employee
(annualized) or a position (staffed) for the full time required.
11) The EHR Incentive initiative includes both a Medicare incentive program and a
Medicaid incentive program. Eligible professionals are able to receive the same dollar
amount of payments under either the Medicare or the Medicaid program.
12) Capital expenditure budgets are necessary because they plan, monitor and control
long-term financial issues.
13) Points represent a certain percentage of the loan amount paid to cover costs of the
prorated real estate tax.
14) When evaluating capital expenditure proposals, management planning must involve
the allocation of available financial resources for projects that promise to reap returns in
the future. This applies only to for-profit organizations, as not-for-profit organizations
do not have to be concerned about such issues.
15) Of the four elements of financial management, the planning element makes sure
each area of the organization is following the plans that have been established.
16) A vision statement is the same as a mission statement.
17) Direct costs can be traced, while indirect costs have to be allocated.
18) Eligible professionals must recognize various initiatives that often have different
requirements and varying timelines. Which of the following represent quality
improvement programs that are currently in place?
A. The Medicare EHR Incentive Program (under the HITECH Act)
B. The Physician Quality Reporting System (PQRS)
C. The Medicare Improvements for Patients and Providers Act (MIPPA) e-Prescribing
D. Incentive Program
E. A & B
F. A & C
G. B & C
H. All of the above
19) What balance sheet item is never depreciated?
A. Equipment
B. Buildings
C. Land
D. None of the above
20) Expenses represent:
A. The outflow from the business
B. The inflow into the business
C. A stream of expenditures that flow out of the organization
D. A & B
E. A & C
F. B & C
G. None of the above
21) Common uses of managerial accounting typically include:
A. Pricing of services yes
B. Planning and control of operations yes
C. Control of performance measures yes
D. Reporting service profitability yes
E. A, B, C
F. B, C, D
G. A, C, D
H. All of the above
22) Subsidiary schedules include:
A. balance sheet and schedule of patient revenue
B. schedule of operating expenses and schedule of hospital statistics
C. neither of the above
23) How many of the following statements about financial projections are correct?
Projections:
A. Are based on assumptions that are expected to exist
B. Reflect actions that are expected to occur
C. Are based on different sets of hypothetical assumptions
D. Reflect actions that might occur, based on such hypothetical assumptions
E. Are considered to be prospective financial statements
F. A & B
G. A, B & E
H. C & D
I. C, D & E
24) Assume the following: Payment #1 totals $2,100 ($1,500 prinicipal and $600
interest expense); Payment #2 totals $2,000 ($1,500 principal and $500 interest
expense); and the remaining prinicipal balance after these two payments is $100,000.
If the amortization schedules Remaining Principal Balance column after these payments
amounts to $100,000, what is the balance in the column before these payments?
A. $103,000
B. $97,000
C. $104,100
D. $95,900
E. None of the above
25) In the chapter about owning versus leasing, one set of examples compares the cost
of owning versus the cost of leasing for Southside Clinic, a not-for-profit organization.
The net advantage to owning (versus leasing) for Southside amounted to $676. The
difference between the two methods of financing:
A. Is so small that it might be disregarded
B. May be considered as a nearly neutral comparison between the two methods
C. Both of the above
D. Neither of the above
26) Another purpose of planning is to:
A. Provide supervision
B. Identify ineffective areas
C. Identify required steps to accomplish objectives
D. A & B
E. A & C
F. B & C
G. All of the above
27) How many of the following expenses are likely to be allocated in a nursing
departments operating budget?
A. Dietary
B. Community relations
C. Human resources
D. Medical records
E. A & B
F. C & D
G. B & C
H. All of the above
28) Examples of general services expense include:
A. Insurance and payroll taxes
B. Laundry and dietary
C. Both of the above
D. Neither of the above
29) If the Business Plan involves equipment, basic information within the plan should
include at least:
A. what the equipment specifically does
B. why it is special or different
C. whether operational training is required
D. whether there are regulatory requirements involved
E. all of the above
F. A, B and C only
30) The contribution income statement:
A. Specifically identifies the contribution margin within the net worth format
B. Specifically identifies the contribution margin within the income statement format
C. Shows how the remaining difference is available for fixed costs and operating
income
D. A & B
E. B & C
F. All of the above
31) In calculating the number of employees that are required to fill a scheduled
position, now assume the following: one full-time employee works 48 hours per week
(twelve hours per day times four days). Therefore one twelve-hour shift per day times
seven days per week equals:
A. 56 hours on duty
B. 84 hours on duty
C. Neither of the above
32) When the result of operations is in a comparative format that presents more than
one period of time (such as for the year ended December 31, 2013 and for the year
ended December 31, 2014), the most current period should appear on the statement in
the:
A. Left column
B. Right column
C. Not applicable
33) Three compliance requirements regarding electronic health records that may force
change include the adoption of:
A. ICD-10-CM and ICD-10-PCS codes
B. electronic prescribing for physicians and other prescribing professionals
C. electronic health records initiated by the ARRA
D. Centers for Disease Control and Prevention (CDC) requirements
E. all of the above
F. A, B and C
G. none of the above
34) An organizations budgeting process should include the expression of its major
policies:
A. In writing and in qualitative terms
B. In writing and in subjective terms
C. Both verbally and in writing
D. Both in writing and through training sessions
E. None of the above
35) Revenue typically represents earned amounts that are:
A. Due to the organizations major business
B. Due to any business function the organization may perform
C. Neither of the above
36) In general, under the EHR Incentive Medicare program an eligible hospital can
receive a two-part payment that includes (1) an initial base amount and (2) a Medicare
share that is computed according to a formula.
37) When a companys bonds are sold, they represent:
A. The companys promise to pay at a future date
B. An expectation that the bonds will be redeemed at or on a certain date
C. That the redemption date of the bonds will typically be several years in the future
D. All of the above
38) In the case of healthcare organizations, volume generally means:
A. Number of patient days for inpatient services
B. Number of procedures for outpatient services
C. Number of patient days for outpatient services
D. A & B
E. B & C
F. None of the above
39) The manager of a hospital unit may contribute to a strategic planning project by:
A. serving on a planning committee or task force
B. gathering and/or analyzing data for the project
C. writing the organizations mission statement
D. suggesting criteria for performance measures
E. all of the above
F. (A), (B) and (D) only
G. (B), (C) and (D) only
H. none of the above
40) Of the four segments that make a healthcare financial system work, which segment
provides evidence that an event has occurred?
A. The reporting system
B. The accounting system
C. The original records
D. The information system
E. Any of the above
41) Review Midtown General Hospitals financial committee choices about the old
laundry building in the preceding question. Which of these choices will typically
involve expending operating budget funds instead of capital expenditure budget funds?
A. Keep the existing laundry building in its present condition through ongoing repairs
and maintenance
B. Renovate either one of the buildings and replace the equipment
C. Contract for commercial laundry services
D. A & B
E. A & C
F. B & C
G. All of the above
42) Stock warrants:
A. Do not pay dividends
B. Pay dividends
C. Either of the above
D. Neither of the above
43) When comparing current expenses to current budgets,
A. The CFO (a manager at a higher level) will be responsible for analyzing and
managing detailed budgets of the various departments
B. The CFO may convert the comparative data into charts or graphs to better tell the
story visually
C. Either of the above
D. Neither of the above
44) Transition to the new diagnosis codes provides how many of the following benefits:
A. Detail improves the accuracy of data used for medical research
B. Precisely defines procedures with detail about body parts and any device used
C. Supports interoperability and the exchange of health data between other countries
and the United States
D. A & B
E. A & C
F. B & C
G. All of the above
45) Assume the following: the total payment amount is $1,600; the remaining principal
balance before this next payment is $48,400; and the principal amount of this payment
is $1,200. Therefore the interest expense portion of this particular payment is:
A. $400
B. $600
C. $1,200
D. $1,600
E. None of the above
46) Whatever the manager is responsible for – the unit, the department or the patient – is
known as a __________.
47) Within a departmental operating budget, General and Administrative expenses will
probably be mostly __________ costs.
48) The four segments that make a financial system work include the original records,
the information system, the accounting system, and the __________ system.
49) Flowsheets illustrate the flow of activities that capture __________.
50) Flexible budgeting variance provides a method to get more __________ about the
composition of departmental expense.
51) One of the benefits of transitioning to ICD-10 is fewer _______ claims.
52) The typical information contained in an amortization schedule commonly includes:
Payment Number; Total Payment Amount; Principal Portion of Payment; __________
Portion of Payment; and Remaining Principal Balance.