1) Forecasts are:
A. Future financial statements
B. Considered to be prospective
C. Both of the above
D. Neither of the above
2) The evaluation process can be more manageable if one chosen method is uniformly
used to evaluate:
A. The return on investment
B. The payback period
C. Both of the above
D. Neither of the above
3) The CMS computation of ICD-10 training costs includes:
A. expenses of training
B. lost work time
C. hospital system hardware and software costs
D. all of the above
E. both A and B only
F. none of the above
4) A term that was originally associated with manufacturing rather than with services
such as healthcare is:
A. Cost objectives
B. Cost centers
C. Product costs
D. Period costs
5) Actions affecting the general ledger include:
A. Statements reflecting transactions are created
B. Groups of transactions are gathered and summarized
C. Adjusted and reviewed transactions for the period are balanced
D. A & B
E. A & C
F. B & C
G. None of the above
6) The pie charts presentation style is:
A. Image-driven
B. Within a grid
C. Circular
D. None of the above
7) In the sample business plan format provided in the text, the Executive Summary
appears:
A. Immediately before the Appendix
B. Immediately after the Title Page
C. Preceding the Service and/or Equipment Description
D. A & C
E. B & C
F. None of the above
8) The denominator of the formula to calculate the contribution margin method of
determining target operating income consists of the contribution margin per unit. What
is the correct numerator in the formula?
A. Fixed costs plus target operating income
B. Target operating income
C. Fixed costs plus variable costs
D. None of the above
9) If the heading on a report reads For the three-month period ended December 31, we
know that the report covers a:
A. Fiscal year
B. Stub year
C. Stub period
D. A & B
E. A & C
F. B & C
G. None of the above
10) The following information is part of the budget preparation process:
A. Available resources
B. Budget scope
C. Budget format to be used
D. A & C
E. B & C
F. All of the above
G. None of the above
11) Some organizations designate whether their cost centers are:
A. Located on campus versus located off campus
B. Revenue producing versus non-revenue producing
C. None of the above
12) The term case mix adjustment may refer to:
A. The acuity level of a patient
B. The level of resources required to provide care for a patient with a particular acuity
level
C. Data processing statistics
D. A & B
E. A & C
F. All of the above
13) Regarding the characteristics of core and menu objectives, what following
statements are correct?
A. Core objectives must all be met
B. Menu objectives provide a choice
C. A minimum number of menu objectives must be met
D. Both core and menu measures provide a choice
E. A & B
F. C & D
G. A, B & C
H. None of the above
14) Grouping expenses by diagnoses and/or procedures for planning and control is
especially useful because much of the revenue in many healthcare organizations is
designated by either diagnoses or procedures.
A. Correct
B. Not correct
C. Not applicable
15) Common sizing:
A. compares figures over several time periods
B. puts information on the same relative basis
C. both of the above
16) Treasury bills:
A. pay the full amount invested if redeemed at maturity
B. have a minimum dollar amount to purchase
C. are typically issued with maturities of three, six or twelve months
D. all of the above
E. none of the above
17) Forecast difficulty is greatly affected by the:
A. Amount of computerized check registers readily available
B. Amount of electronic information readily available
C. Type of gross salary payroll information readily available
D. All of the above
E. None of the above
18) Subsidiary journals include the:
A. Trial balance
B. General ledger
C. Payroll journal
D. Any of the above
E. None of the above
19) Whether there will be salvage value is an important factor when:
A. Computing the cost of owning
B. Preparing a comparative cash flow statement
C. Computing the cost of leasing
D. A & B
E. A & C
F. B & C
20) Parametric analysis is one type of benchmarking analysis. In parametric analysis:
A. the characteristics or attributes of similar services are examined
B. the process that serves as a standard for comparison is examined
C. both of the above
D. neither of the above
21) Revenue is typically defined as the value of services rendered, expressed at:
A. Established rates net of discounts
B. Regional established rates
C. Market value
D. None of the above
22) In regard to an operating budget, identifiable costs may generally include:
A. supporting patient care
B. direct patient care
C. both of the above
D. neither of the above
23) Inputs into the systems ambulatory care setting data repository (as described in the
previous question) include the following:
A. Scheduling system data
B. Outpatient financial information
C. Inpatient financial information, if relevant
D. Inpatient care plan information, if relevant
E. A & B
F. A, B & C
G. A, B & D
H. All of the above
24) Investments should be recorded on the
A. Income statement
B. Balance sheet
C. Neither of the above
25) How many of the following statements about Electronic Data Interchange (EDI) are
correct?
A. EDI requires the use of a standard format when electronically transferring
information such as electronic media claims
B. EDI allows the electronic transfer of information between trading partners
C. EDI allows the electronic exchange of medical, billing and other information and
process transactions in a fast and cost effective manner
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
26) The stage 2 criteria for meaningful use focus upon how many of the following
items:
A. More rigorous health information exchange (HIE)
B. Increased requirements for e-prescribing and incorporating lab results
C. More patient-controlled data
D. A & B
E. A & C
F. B & C
G. All of the above
27) In a mixed cost such as telephone cost:
A. The fixed portion of the cost is the charge for actually consuming the service
B. The variable portion of the cost is the charge for having the service ready to use
C. Both of the above
D. Neither of the above
28) How many of the following are Cash Flow Statement assumptions?
Number of years in the future to forecast
A. Cash outflow
B. Capital asset salvage value (if any)
C. A & B
D. A & C
E. B & C
F. All of the above
G. None of the above
29) Assume revenue per visit is $100.00 and the variable cost per visit is $70.00. Also
assume the revenue figure equals 100%. What percentage is the contribution margin per
visit?
A. 30%
B. 35%
C. 70%
D. None of the above