1) External reporting to third parties in health care (depending upon type of reporting
organization) may include reporting to:
A. Stockholders
B. Government entities
C. Health plan payers
D. A & B
E. A & C
F. B & C
G. All of the above
2) Using the information provided in the preceding question, is the infusion center
variance analysis example a:
A. Two-variance analysis
B. Three-variance analysis
C. Five-variance analysis
D. None of the above
3) In the Riverside Nursing Facility, what monthly cost changes proportionately with
the number of patients in house (the volume)?
A. Variable cost
B. Semivariable cost
C. Fixed cost
D. None of the above
4)
5) An organization that has adopted TQI (total quality improvement) will typically
have:
A. Fewer performance measures
B. A wider variety of performance measures
C. Not applicable
6) Variance analysis inputs must stipulate the following:
A. The applicable time period
B. The services or products delivered or produced
C. Both of the above
D. Neither of the above
7) The formula for a Debt Service Coverage Ratio (DSCR) is represented as change in
unrestricted net assets plus interest, depreciation and amortization divided by:
A. Maximum total debt service
B. Maximum annual debt service
C. Total long-term liabilities
D. None of the above
8) Mission, vision and value statements can vary in how many of the aspects described
below?
A. Organization
B. Length
C. Terminology
D. Emphasis
E. A, B & C
F. A, C & D
G. B, C & D
H. All of the above
9) At the General Care Clinic, if total assets are $100,000 and long term assets are
$60,000 and other assets are $10,000 what is the current asset amount?
A. $30,000
B. $40,000
C. Neither of the above
10) The Golden Age Nursing Facility enters into a lease contract for badly needed fancy
new kitchen equipment. After the contract is signed, the CFO at the home office of the
nursing facility chains ownership informs the Golden Age Administrator that the
present value of the kitchen equipment lease payments amounts to 70% of the assets
value. Does this lease have to be capitalized?
A. Yes
B. No
C. Dont know
11) The Andrews and Anderson physician practice partnership owes $400,000 in debt
and has $600,000 in partners equity. The partnerships capital structure, or debt-equity
relationship, is therefore:
A. 2-to-3
B. 3-to-2
C. 60%
D. 40-60
E. 60-40
F. None of the above
12) The statement of revenue reflects a record of:
A. what an organization owns, what it owes, and what it is worth
B. a record of transactions over a period of time
C. both of the above
D. neither of the above
13) “Average Inventory” is calculated as Beginning Inventory plus Ending Inventory
divided by:
A. four
B. two
C. six
D. none of the above
14) The contribution margin is the difference between:
A. Revenue and total costs
B. Revenue and variable costs
C. Revenue and fixed costs
D. None of the above
15) Managers who perform much of the organizations strategic planning typically
operate from a:
A. Clinical view
B. Process view
C. Financial view
D. Any of the above
E. None of the above
16) Actions affecting subsidiary journals include:
A. Individual transactions are recorded
B. Groups of transactions are gathered and summarized
C. Similar transactions are grouped and balanced
D. A & B
E. A & C
F. B & C
G. None of the above
17) The reporting period for a hospital is:
A. a fiscal year (FY)
B. a calendar year (CY)
C. neither of the above
18) How many of the following are Income Statement assumptions?
A. Space occupancy
B. Property and equipment
C. Overhead
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
19) Cost centers within the cost report are grouped into:
A. Three categories
B. Five categories
C. Seven categories
D. None of the above
20) Within the same example as the preceding question, the table in the text lists
various general services expenses. The first line item in the table is for dietary expense,
with amounts of $320,000 in year 1 and $405,000 in year 2 . The dollar difference
between the two is $85,000. To convert the difference to a percentage, the $85,000
difference is divided by year 1s $320,000, resulting in a percentage differential of
26.5% (rounded).
On another line item of this table, housekeeping expense amounts were $120,000 in
year 1 and $180,000 in year 2 . The dollar difference between the two is $60,000. What
is the housekeeping expense difference when converted to a percentage?
A. 20%
B. 33%
C. 50%
D. None of the above
21) When tying cost to staffing for the annualizing method, the:
A. cost of nonproductive days is already in the formula
B. the base rate must be increased, or burdened, by the nonproductive time
C. neither of the above
22) Typical investment indicators may include the:
A. Annual rate of inflation
B. Gross domestic product
C. Annual rate of deflation
D. A, B & C
E. A & B
F. None of the above
23) The final compliance date for adoption of ICD-10-CM and ICD-10-PCS codes (as
of the date of this writing) is October 1:
A. 2013
B. 2014
C. 2015
D. none of the above
24) At ABC company, if assets equal $50,000 and liabilities equal $30,000, what is the
total of liabilities and net worth?
A. $20,000
B. $50,000
C. $70,000
D. None of the above
25) Not-for-profit organizations are generally bound by certain legal limitations, and
thus they may:
A. Be able to raise funds through donations
B. Be able to rely upon a different income stream
C. Not be able to raise funds by selling an additional interest in the company (such as
the sale of common stock)
D. A & B
E. B & C
F. All of the above
26) Bonds:
A. Are assets to the issuing company
B. Are liabilities to the issuing company
C. Will accrue interest for the benefit of the issuing company
D. None of the above
27) Useful life is generally an important assumption in which of the following capital
expenditure proposals?
A. Acquiring new equipment
B. Upgrading existing equipment
C. Funding new programs
D. A & B
E. A & C
F. B & C
G. All of the above
28) Which type of financial statement is often prepared to answer a what-if question?
A. A projection
B. A forecast
C. Either of the above
D. Neither of the above
29) If cost of goods (drugs) sold is 65%, then we can assume that the gross margin will
be:
A. $35
B. 45%
C. 100%
D. None of the above
30) According to the Health Information Technology for Economic and Clinical Health
Act (HITECH), a part of the American Recovery and Reinvestment Act of 2009
(ARRA), a qualified electronic health record has the capacity to:
A. capture and query information relevant to health care quality
B. support physician order entry
C. provide clinical decision support
D. exchange electronic health information with, and integrate such information from,
other sources
E. all of the above
F. B and C only
G. none of the above
31) When making decisions about capital funding, management will typically consider
the concept of what return could be realized on alternative investments of the capital
that is available. This concept is known as:
A. Opportunity cost
B. Alternative cost
C. Capital rationing cost
D. Any of the above
E. None of the above
32) A nonfinancial variable is acknowledged as one type of benchmark:
A. Correct
B. Not correct
C. Not applicable
D. Dont know
33) Regarding healthcare financial systems, the knowledgeable manager should be able
to:
A. Understand that four separate segments of a system exist
B. Recognize how the segments fit together within a particular organization
C. Recognize where his or her duties fit within these segments
D. Be able to make executive decisions concerning a particular segment
E. A, B & C
F. A, B & D
G. A, C & D
H. All of the above
34) After formulating strategies and identifying goals, the second part of CMS
situational recommendations include how many of the following:
A. Develop training programs
B. Develop implementation plan for systems changes
C. Plan for documentation changes
D. A & B
E. A & C
F. B & C
G. All of the above
35) Using the same assumptions as in the preceding question, complete the contribution
margin income statement. Thus the operating income amounts to:
36) The term “loan costs” covers expenses necessary to __________ the loan.
37) A tradition business plan typically contains three major elements, including the
marketing plan, the financial plan and the __________ plan.
38) An idea or practice perceived as new is a definition of _________.
39) True comparability needs to meet three criteria, including unit measurement,
__________ and __________.
40) A good business plan should answer the __________ that occur to a knowledgeable
reader.
41) In the healthcare industry, “capacity” relates to the ability to produce or provide
specific healthcare __________.