1) Productive time relates to time spent performing functions that are specified in that
employees job description. Julie works in the Medical Records department. She is the
junior member of the Medical Records staff. Because the department is currently
somewhat overstaffed (an uncommon occurrence), Julie has begun spending two
afternoons per week doing filing for the Accounts Receivable office that is next door.
Strictly speaking, should Julies supervisor count her two afternoons per week in
Accounts Receivable as part of the Medical Records department productive time?
A. Yes
B. No
C. Not applicable
2) Leasing is typically an alternative to other means of financing.
A. Correct
B. Not correct
C. Not applicable
3) Which variance is sometimes known as the efficiency variance?
A. Volume variance
B. Quantity variance
C. Price variance
D. None of the above
4) A second set of examples compares the cost of owning versus the cost of leasing for
Northside Clinic, a for-profit organization. The net advantage to leasing (versus
owning) for Northside amounted to $1,489. Why is Northsides net result so different
from Southsides net result?
A. Because the not-for-profit company could recognize tax savings
B. Because the for-profit company was unable to recognize tax savings
C. Both of the above
D. Neither of the above
5) Fred is responsible for revenue within his organization. Generally speaking, Fred is
therefore responsible for:
A. Inflow
B. Outflow
C. Neither of the above
6) When calculating the comparative present value cost of owning versus cost of
leasing, the computation necessarily includes present value factors. The present value
factor for each year represents:
A. The assumed cost of capital
B. The actual cost of capital
C. Either of the above
D. Neither of the above
7) Federal governmental agencies must comply with legislative requirements pertaining
to their strategic plans. Which of the following subjects are required to be present in
each agencys strategic plan?
A. A comprehensive mission statement
B. General goals and objectives for major functions and operations
C. A description of how action plans are to be achieved
D. Key external factors that might significantly affect achievement of the goals and
objectives
E. A & B
F. A, B & C
G. A, B & D
H. All of the above
8) Productive time represents the:
A. standard time set for a specific position
B. employee’s total paid-for hours
C. employee’s net hours on duty when performing job functions
9) A pair of reports have been provided within the Cost Classifications chapter that
illustrate a rehab cost centers direct and indirect cost. One report explains how indirect
costs were allocated. The other report presents direct cost, the carried-forward indirect
cost, and their totals. Which of the two reports is the subsidiary report?
A. The report titled Example of Rehab Cost Center Direct and Indirect Cost Totals
B. The report titled Example of Indirect Costs Allocated to Rehab Cost Center
C. Neither of the above
10) Regarding the maximum EHR incentive payment that an eligible professional can
receive for his or her first year in the Medicare program, which of the following
statements is correct?
A. Medicare first year 2016 would receive more dollars than Medicare first year 2014
B. Medicare first year 2014 would receive more dollars than Medicare first year 2012
C. Medicare first year 2014 would receive fewer dollars than Medicare first year 2012
D. None of the above
11) The National Center for Health Statistics has developed a clinical modification of
the ICD-10, termed the ICD-10-CM. The ICD-10-CM diagnosis classification system
has been developed for use in:
A. All types of healthcare treatment settings in the United States
B. Inpatient hospital settings only within the United States
C. All types of healthcare treatment settings in any country that has adopted ICD-10
D. A & B
E. A & C
F. B & C
G. None of the above
12) The physical location where the service will be provided is information located in
the plans:
A. Organization segment
B. Marketing segment
C. Financial segment
D. Either A or C
E. Any of the above
13) The directly responsible supervisor should be named in the information located in
the plans:
A. Financial segment
B. Organization segment
C. Marketing segment
D. Any of the above
E. None of the above
14) Solvency ratios reflect the ability of the organization to pay its annual debt
obligations, including:
A. Annual interest and principal obligations on its long-term debt
B. Annual interest and principal obligations on both its long-term and short-term debt
C. Annual principal obligations only on its long-term debt
D. None of the above
15) If a piece of equipment costs $110,000 and has a ten-year useful life along with a
$10,000 salvage value, what is the annual depreciation expense using the straight-line
depreciation method?
A. $11,000
B. $10,000
C. $20,000
16) Doctors Green and Brown enter into a lease contract for a roomful of new infusion
equipment. The terms of their lease contract allow them to buy the equipment at the end
of the five-year lease for one dollar. Does this lease have to be capitalized?
A. Yes
B. No
C. Dont know
17) How many of the following should also be considered when forecasting equipment
acquisition?
A. Certification requirements
B. Special consideration given to a specific company
C. Amount of staff training required
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
18) Standardized worksheets and electronic templates may significantly influence the
final forecast results.
A. Correct
B. Not correct
C. Not applicable
19) Consistency criteria include proper treatment of time periods, inflation factors and
verification.
A. Correct
B. Not correct
C. Not applicable
20) An organizations comprehensive, or overall, financial budget may typically
encompass the:
A. Budget to acquire capital assets for future use (an eight to ten year future range)
B. Capital expenditures budgets for the next five years
C. Operations budget for the next twelve months
D. A & B
E. A & C
F. B & C
G. All of the above
21) Static budgets are essentially based on a level of operations that:
A. will show change during the budget period
B. will not show change during the budget period
C. either of the above
22) Average annual net income divided by the average investment amount is another
method of computing:
A. present value
B. unadjusted rate of return
C. budget variance
23) Conceptually speaking, if the year has been good, then revenue less expenses
should result in an excess of expenses over revenue.
A. Correct
B. Not correct
C. Not applicable
24) If these costs for Riverside Nursing Facility were to be shown on a graph, the
appropriate total monthly costs in dollars would appear on the:
A. Horizontal axis
B. Vertical axis
C. Neither of the above
25) The Hilltop Health System CFO is briefing new board members about Hilltop
financial issues. The CFO explains that Hilltops Capital Spending Plan may expend
funds:
A. To acquire a new reserve for depreciation
B. For capital assets already existing and in place
C. To acquire new capital assets
D. A & B
E. A & C
F. B & C
G. All of the above
26) If a note payable is going to be paid over a three-year period, the liability may be
classified as:
A. short-term
B. long-term
C. both short-term and long-term
27) The Medicaid program:
A. is funded exclusively by federal funds
B. provisions are state specific within broad federal national guidelines
C. both of the above
28) Sensitivity analysis is often used when forecasting revenue. When revenue is
forecasted in multiple levels, the most common forecasts are in:
A. Two levels: best case versus worst case
B. Three levels: basic plus best case and worst case
C. Four levels: desired, basic, best case, worst case
D. None of the above
29) To calculate a contribution margin per unit, assume the following: variable cost per
unit $60; total fixed cost $2,000; unit price for sales $100 and total sales $8,000. The
contribution margin per unit amounts to:
A. $20
B. $40
C. $60
D. $80
E. None of the above
30) Industry standards are used for:
A. Decision making
B. Comparative purposes
C. Both of the above
D. Neither of the above
31) The Federal governments planning requirements are important because they
provide:
A. guidance through regulated concepts
B. planning templates for non-governmental organizations use
C. a framework for strategic planning
D. all of the above
E. (A) and (C) only
F. (B) and (C) only
G. none of the above
32) Performance measures are an integral part of the strategic planning cycle and its
process flow. How many of the following statements about such performance measures
are correct?
A. Performance measures can be reported as outcomes
B. Accountability is achieved by reporting performance measures as outcomes
C. A single action plan is linked to a series of performance measures
D. A single performance measure is linked to a series of action plans
E. A & B
F. A, B & C
G. A, B & D
33) The statement of cash flows uses a series of reconciling adjustments to account for:
A. Cash amounts
B. Noncash amounts
C. Either of the above
D. Neither of the above
34) When benchmarking measures against the best levels of performance, these best
levels may be found:
A. Inside the organization
B. Outside the organization
C. Both of the above
D. Neither of the above
35) The ultimate result of strategic planning is an actual plan, presented in __________.
36) Municipal bonds can either be general obligation bonds or __________ bonds.
37) The three stages of meaningful use are summarized as follows:
-Stage 1 includes data capture and sharing
-Stage 2 includes advanced ________ processes
-Stage 3 includes ________ outcomes.
38) Capital expenditure budgets involve the acquisition of long-lasting assets. In order
to complete a capital expenditure budget, decisions must be made about the
__________ long-term use of funds.
39) Four reasons for common uses of estimates include timeliness considerations,
cost/benefit considerations, preparation of internal monthly statements, and
__________.
40) Under the EHR Incentive Medicare program, hospital incentives are based on
____________ hospital services.
41) Meaningful use means providers must show they are meaningfully using their
certified EHR technology by meeting thresholds (or minimum levels) for a number of
____________.
42) The purpose of one element of financial management is to ensure effective resource
use and provide daily supervision. Which element is this?
43) A project planning budget should include relevant costs such as software and
__________.