1) The actual cost is attached to staffing in the books and records through the:
A. general ledger
B. basic transaction record
C. check register
2) The term revenue represents:
A. Amounts earned by an organization
B. Amounts expended by an organization
C. The excess of cash remaining after disbursements
D. None of the above
3) The burden approach to calculating full-time equivalents:
A. Allows the full cost of a position to be computed
B. Allows the net cost of a position to be computed
C. Allows a computerized worksheet to be created
D. None of the above
4) Within the Leadership Decision Stages process flow, how many of the following are
correct?
A. Gathers Information represents Stage 1 of the process flow
B. Gathers Information represents Stage 2 of the process flow
C. Makes A Decision represents Stage 2 of the process flow
D. Makes A Decision represents Stage 3 of the process flow
E. A & C
F. A & D
G. B & D
E. None of the above
5) Western General Hospital is purchasing a new type of radiology equipment. Elliott,
another radiology technician, will also be going to New York City for one week to be
trained on using the new equipment. Elliott volunteered to go attend the training; he
was not assigned to go, and the hospital will not be paying him while he is there.
(Elliott happens to have a rich uncle who lives in New York.) Is Elliotts time during this
week considered productive or nonproductive time when computing the hospitals
full-time-equivalents?
A. Productive
B. Nonproductive
C. Neither of the above
6) Midtown Clinic bought new equipment for $50,000. The clinic then sold its old
equipment that is being replaced for $6,000.What is the resulting cumulative cash flow?
A. $50,000
B. $44,000
C. $6,000
D. None of the above
7) The regression line that is fitted to the plotted points on a graph such as an example
in the text represents:
A. A line of averages
B. The average
C. Either of the above
D. Neither of the above
8) ABC Healthcare’s Controller has calculated that ABC must pay state and federal
income taxes this year at a rate of 20 percent. Depreciation on equipment purchased for
the Emergency Department will amount to $20,000 this year. Income tax savings for the
current year on this equipment will therefore amount to:
A. $2,000
B. $4,000
C. $8,000
D. None of the above
9) Inflation is feared because it:
A. Typically results in a fall in prices
B. Limits or reduces the economic activity of the country
C. Reduces the spending power of dollars
D. Typically results in a rise in prices
E. A & B
F. A & C
G. B & C
H. C & D
10) Loans borrowed from a lending institution are typically classified by the length of
the loan. Ambleside Lake Nursing Facility borrows $25,000 to be repaid at the end of
eighteen months. Amblesides loan is classified as:
A. Short-term borrowing
B. Long-term borrowing
C. Either of the above
D. Neither of the above
11) What method calculates from period to period?
A. The present-value analysis method
B. The internal rate of return method
C. The unadjusted rate of return method
D. All of the above
E. Neither of the above
12) How many of the following statements about financial projection assumptions are
correct?
A. Compiling the projections comes before making certain key assumptions
B. Documenting assumptions adds validity to the final projected statements
C. An overall process of information gathering underlies the assumptions themselves
D. A & B
E. A & C
F. B & C
G. All of the above
13) When computing the rate of return, what method takes the rate of return obtained
and restates it?
A. The internal rate of return method
B. The unadjusted rate of return method
C. Either of the above
D. Neither of the above
14) If a cost cannot be specifically associated with a particular cost object, then it is:
A. A direct cost
B. An indirect cost
C. Either of the above
D. Neither of the above
15) The Compound Interest Table shows the:
A. Future Amount of $1.00
B. Present Value of $1.00
C. Present Value of an Annuity of $1.00
D. None of the above
16) Managerial accounting is considered to be:
A. Prospective
B. Retrospective
C. Both prospective and retrospective
D. A & B
E. A & C
F. B & C
G. None of the above
17) Expired costs will be matched against:
A. Current revenues
B. Future revenues
C. Either of the above
D. Neither of the above
18) By their definition not-for-profit organizations should not have equity.
A. Correct
B. Not correct
C. Not applicable to not-for-profits
19) The Metropolis Health Systems Emergency Intake employees work on a 24-hour
seven-day per week schedule. Fred and Ellen share part of a position there. Each works
20 hours per week, for a total of 40 hours. Do their hours worked equal a full-time
equivalent position in the Emergency department?
A. Yes
B. No
C. Not applicable
20) Assume the following: Payment #1 totals $1,600 ($1,200 prinicipal and $400
interest expense); Payment #2 totals $1,600 ($1,300 principal and $300 interest
expense); and the remaining prinicipal balance before these two payments is $50,000.
If the amortization schedules Remaining Principal Balance column prior to these
payments amounts to $50,000, what is the balance in the column after these payments?
A. $47,500
B. $52,500
C. $53,200
D. $46,800
E. None of the above
21) If current assets amount to $120,000, total assets are $600,000, current liabilities are
$60,000, long term debt is $340,000 and total liabilities are $400,000, what is the
current ratio?
A. 1.5 to 1
B. 1.76 to 1
C. 2 to 1
D. None of the above
22) One objective for the budgeting process of Hilltop Hospital, a not-for-profit
community hospital, is to create cost awareness:
A. Throughout the community it serves
B. Throughout its own organization
C. By the federal government regulators
D. By the state legislators that control Medicaid costs
23) Comparing your organizations information to that of other organizations is called:
A. Trend analysis
B. Common sizing
C. Either of the above
D. Neither of the above
24) The National Center for Health Statistics (NCHS) is:
A. An agency within the Centers for Medicare and Medicaid Services (CMS)
B. The federal agency that is responsible for use of the ICD-10 in the United States
C. One of the international centers collaborating with the WHO to develop and revise
the ICD
D. A & B
E. A & C
F. B & C
25) Points typically represent a certain percentage of the loan amount paid and also help
cover the costs of financing the loan
A. Correct
B. Not correct
C. Not applicable
26) How many of the following statements are correct regarding agencies in the U.S.
federal government? Agencies in the federal government are:
A. Required by law to prepare strategic plans
B. Required by law to provide reports on performance that tie to the strategic plans
C. Are allowed to prepare strategic plans but are not required to do so
D. Are allowed to provide performance reports but are not required to do so
E. A & B
F. A & D
G. C & D