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1) Another term for responsibility center is:
A. Profit center
B. Cost object
C. Allocation center
D. Neither of the above
2) The contribution margin computation:
A. Allows fixed, variable and semivariable cost classifications
B. Requires either fixed or variable cost classifications
C. Neither of the above
3) To calculate a quick ratio, the denominator consists of current liabilities. The
numerator is a combination of the following:
A. Cash and Cash Equivalents
B. Gross Receivables
C. Net Receivables
D. A & B
E. A & C
F. None of the above
4) Dividing operating costs into fixed and variable is necessary:
A. For the construction of a flexible budget
B. For the construction of a static budget
C. As a part of the advance preparation process
D. A & C
E. B & C
F. All of the above
5) The average investment amount is arrived at by taking (1) the total unrecovered asset
cost at the beginning of estimated useful life plus (2) the unrecovered asset cost at the
end of estimated useful life and:
A. Dividing by two
B. Multiplying by two
C. Neither of the above
6) The average cost of inventory derived by using the weighted average inventory
method is in fact an estimate. The weighted average cost is determined by:
A. Dividing the cost of goods available for sale by the number of units available
B. Dividing the number of units available by the cost of goods available for sale
C. Either of the above
D. Neither of the above
7) The weighted average inventory method is sometimes also called:
A. The average cost method
B. The average costing method
C. The weighted inventory method
D. None of the above
8) Indirect costs are sometimes called:
A. Common costs
B. Uniform costs
C. Joint costs
D. A & B
E. A & C
F. B & C
G. None of the above
9) An increase in the volume of money and credit relative to available goods and
services resulting in a continuing rise in the general price level is the definition of:
A. Inflation factor
B. Trend analysis
C. Inflation
D. None of the above
10) An operating expense forecast will typically cover:
A. Operating expenses including labor
B. Operating expenses other than labor
C. Either of the above
D. Neither of the above
11) If assets are $1,000,000, liabilities are $600,000 and net worth is $400,000, what is
the Liabilities to Fund Balance/Net Worth ratio?
A. 0.667
B. 1.4
C. 1.5
D. 1.6
E. None of the above
12) Decision making:
A. Involves analysis and evaluation
B. Requires making choices among available alternatives
C. Relies on information
D. A & B
E. A & C
F. B & C
G. All of the above
13) The York Pharmaceutical Company, a for-profit corporation, needs to raise more
capital for a planned expansion. Yorks CFO suggests selling additional stock in the
company in order to raise the needed capital. Is the CFOs suggestion of selling
additional stock a typical source of capital for proprietary companies?
A. Yes
B. No
C. Not applicable
14) The Eastern Home Health Agency is owned by Betty and Fred Jones. The Joneses
are composing a mission statement to be placed on Easterns web site. Should we expect
the overall content of this organizations mission statement to be:
A. Broadly charitable
B. Generally proprietary
C. Boastful
D. Containing advertising phrases about the agency
E. A, & C
F. B & D
G. B, C & D
15) The types of operating budget items that might require such inputs into the capital
expenditure budget, depending upon the dollar amount required, include:
A. Space renovations
B. Additional capital equipment purchases
C. Capital equipment refurbished/upgraded
D. All of the above
E. None of the above
16) Regarding system-based measures of meaningful use, what following questions are
correct?
A. Do we meet the required threshold?
B. What actions must we take?
C. What function of our certified EHR technology system must be enabled?
D. A & B
E. A & C
F. B & C
G. None of the above
17) The product cost concept is most important to:
A. A nursing unit supervisor
B. A medical records director
C. A pharmacy department manager
18) Solvency ratios:
A. reflect the ability of the organization to pay annual obligations on its long term debt
B. measure the organization's ability to have sufficient resources to meet its long term
obligations
C. both A and B
D. neither A nor B
19) Cash equivalents include:
A. certificates of deposit from banks
B. bank checking accounts
C. money market funds
D. all of the above
E. A and C only
F. A and B only
20) It is possible to perform variance analysis as a:
A. Two-variance analysis
B. Three-variance analysis
C. Five-variance analysis
D. A & B only
E. All of the above
21) According to the HITECH Act, "health information technology" means:
A. hardware, software, integrated technologies or related licenses, intellectual property,
upgrades or packaged solutions
B. services designed for, or supporting the use by, health care entities or patients
C. services intended for the electronic creation, maintenance, access, or exchange of
health information
D. all of the above
E. B and C only
F. none of the above
22) Sources of healthcare revenue in the United States include:
A. A variety of public programs
B. Private payers
C. Certain governmental sources
D. All of the above
E. None of the above
23) ICD-10 implementation assumes that inpatient coders will lose productivity during
an initial time period. CMS estimated this productivity loss in dollars and cents. First
CMS estimated a cost per hour, in dollars, for an inpatient coder. Then CMS estimated
how many extra minutes an inpatient coder would take for each inpatient claim. It was
then possible to calculate a cost per claim. To do so, first calculate a cost per minute.
Then multiply the cost per minute times which of the following?
A. The extra minutes per claim
B. The cost per hour
C. The total number of claims
D. None of the above
24) Trend analysis is sometimes called:
A. horizontal analysis
B. vertical analysis
C. neither of the above
25) The ICD-10 copyright is owned by the:
A. National Center for Health Statistics (NCHS)
B. Centers for Medicare and Medicaid Services (CMS)
C. Centers for Disease Control and Prevention (CDC)
D. None of the above
26) Revenue represents:
A. Actual cash inflows
B. Expected cash inflows
C. Actual cash outflows
D. Expected cash outflows
E. A & B
F. C & D
G. None of the above
27) Other cash equivalents may include:
A. currency
B. bank savings accounts
C. government securities
D. all of the above
E. A and C only
F. A and B only
28) The bar charts data is presented:
A. In vertical bars
B. In horizontal bars
C. In columns
D. None of the above
29) Assumptions are critically important to computations in the payback period theory.
A. Correct
B. Not correct
C. Not applicable
30) The International Classification of Diseases is:
A. The international standard diagnostic classification
B. Used for all general epidemiological purposes
C. Used for many health management purposes and clinical use
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
31) In regard to establishing meaningful use, providers must also successfully meet the
criteria for how many different elements?
A. One element only
B. Two elements
C. Three elements
D. Four elements
E. None of the above
