1) Mixed costs may include:
A. utilities
B. repairs
C. telephone expense
D. maintenance
E. all of the above
F. none of the above
2) Productive time is:
A. Paid-for time on duty
B. Paid-for time not on duty
C. Paid-for time performing job description functions
D. All of the above
E. None of the above
3) Meaningful use means providers must show they are meaningful using their certified
EHR technology by:
A. Meeting thresholds for a number of objectives
B. Meeting thresholds for a number of performance measures
C. Meeting thresholds for a number of specific percentages
D. None of the above
4) If James, an assistant to the CFO, has to create a multiple-page worksheet in order to
set up the assumptions for evaluating the purchase of a modestly priced piece of
equipment, then the CFOs chosen evaluation method is:
A. Probably too complex
B. Just right
C. Neither of the above
5) Likewise, the purpose of mission, vision and value statements is not realized if the
message itself is not relayed. How many of the following are acceptable methods of
relaying the message?
A. Provide summaries downloadable from the web
B. Provide visuals downloadable from the web
C. Express the mission as a motto
D. A & B
E. A & C
F. B & C
G. All of the above
6) The concept of flowsheets explains and illustrates the flow of:
A. Activities
B. Accounts receivable
C. Accounts payable
D. A & B
E. A & C
F. B & C
G. All of the above
7) When activity levels or volume of operations change, fixed costs are those costs that:
A. do not vary in total
B. vary in direct proportion
C. neither of the above
8) When computing the cost of owning: a necessary step in calculating net cash flow
may be:
A. Calculating the tax savings from depreciation expense
B. Calculating the tax savings from leasing expense
C. Both of the above
D Neither of the above
9) Yorks Chairman of the Board, agrees that the York Pharmaceutical Company needs
to raise the required capital for expansion. However, the Chairman argues that
borrowing from a couple of large investors is the desired way for York to raise capital.
Is the Chairmans solution of borrowing from investors a typical source of capital for
proprietary companies?
A. Yes
B. No
C. Not applicable
10) The Green Tree Nursing Facility possesses a note receivable in the amount of
$12,000. The note will not be paid until Mrs. Jones estate is settled, and her attorneys
have informed Green Trees accountant that payment cannot be expected before, at the
earliest, eighteen months from now. Consequently the accountant will record this note
receivable as a:
A. Current, or short-term asset
B. Long term asset
C. Long term liability
D. None of the above
11) Other benefits of transitioning to ICD-10 that have been identified by CMS include
the following:
A. More accurate payments for new procedures
B. Fewer improper claims
C. Guaranteed governmental financial assistance in transitioning
D. A & B
E. A & C
F. B & C
G. All of the above
12) The statement of changes in fund balance/net worth has been described as the
mechanism that links the balance sheet and the statement of revenue and expenses.
A. Correct
B. Not correct
C. Not applicable
13) Evaluating the use of money is possible through computation of:
A. internal rate of return
B. present value analysis
C. unadjusted rate of return
D. payback period
E. all of the above
F. none of the above
14) Within the cost report, the primary purpose of a cost center is to help:
A. Allocate overhead
B. Divide direct salaries into groups
C. Provide a distinction between inpatient and outpatient costs
D. All of the above
E. None of the above
15) When creating a graph, the regression lines can be fitted:
A. Through statistical analysis
B. Visually
C. Either of the above
D. None of the above
16) An owner has:
A. A claim to the entitys assets
B. A claim to the entitys liabilities
C. Invested in the business
D. A & B
E. A & C
F. B & C
G. All of the above
17) A Financial Benchmark Example within the text presents examples of quartile
results. For the line item Long term debt as a percentage of total assets, the Upper
Quartile result is low (26) and the Low Quartiles result is high (42). Using your
judgment and what you have learned to date, is the Low Quartile high result:
A. Better than the Upper Quartiles
B. Worse than the Upper Quartiles
C. Not applicable
D. Dont know
18) Costs that are matched with revenue on the basis of the span of time during which
the cost is incurred are known as:
A. Cost objectives
B. Cost centers
C. Product costs
D. Period costs
19) The Eastern Seaboard Region has an existing local healthcare financing authority.
General Hospital, a local not-for-profit hospital, needs to expand its emergency
department. The hospitals CFO suggests that it may be possible to finance the
emergency department expansion through bonds issued by the local healthcare
financing authority.
A. The CFOs suggestion is correct
B. The CFOs suggestion is not correct
C. Not applicable
D. Dont know
20) The language of finance includes:
A. Assets, liabilities and net worth
B. English, French and Spanish
C. Books about finance
D. A & B
E. A & C
F. B & C
G. None of the above
21) Estimates may be relied upon as inputs to certain reports. However, such estimates
would not be appropriate when preparing:
A. Internal financial statements
B. Budgets
C. Audited financial statements
D. Forecasts
22) The Units of Production (UOP) or Units of Service (UOS) method uses a fixed total
amount of units of service that is an overall total for the life of the equipment. Then
each years actual units of service is depreciated. Assume: total equipment cost is
$10,000, total units of service equals 5,000 and the useful life is five years. Year 1 units
of service equal 900 . The UOS depreciation for Year 1 is:
A. $1,800
B. $2,000
C. $1,000
D. None of the above
23) Depreciation expense:
A. Represents a cash expense
B. Does not represent a cash expense
C. Not applicable
24) Equity is the:
A. Money value of property
B. Ownership right in property
C. Both of the above
D. Neither of the above
25) Managers typically use charts to:
A. Forecast revenues
B. Illustrate projections
C. Report their results
D. Explain their projects
E. A & B
F. B & C
G. C & D
H. All of the above
26) When activity levels or volume of operations change, semivariable costs are those
that:
A. do not vary in total
B. vary in direct proportion
C. vary, but not in direct proportion
D. none of the above
27) Medical supplies and drugs expense belongs on the:
A. Balance sheet
B. Statement of revenue and expenses
C. Neither of the above
28) When a mortgage from a lending institution is obtained, the usual purpose of this
long-term borrowing is to finance:
A. Land
B. Buildings and/or equipment
C. Research and development
D. Buying back stock of the company
E. A & B
F. A, B & C
G. A, B & D
29) Costs that can be specifically associated with a particular unit or a specific patient
are considered to be:
A. Direct costs
B. Indirect costs
C. Either of the above
D. Neither of the above
30) The electronic advances of today are possible because of two major steps that were
accomplished many years ago. These steps included which of the following:
A. Create a standardized claim form (a national claims format) that could be sent and
received electronically
B. Implement the ability to make electronic funds transfers (EFTs) so payments could
be sent and received electronically
C. Create the first electronic prescribing incentive program
D. A & B
E. A & C
F. B & C
G. All of the above
H. None of the above
31) The physicians who will use the service or the equipment represents information
located in the plans:
A. Organization segment
B. Marketing segment
C. Financial segment
D. Any of the above
E. Not applicable