1) The purpose of controlling is to:
A. Ensure that plans are being followed
B. Ensure effective resource use
C. Identify objectives
D. A & B
E. A & C
F. B & C
G. All of the above
2) Which of these financial statements is compared to a snapshot in the text?
A. Balance sheet
B. Statement of revenue and expense
C. Neither of the above
3) Benchmarks are typically used to measure:
A. Performance gaps
B. Salary adjustments
C. Capital improvements
D. All of the above
4) As another part of the history of financial management, who developed a
minimum-wage system in 1800 b.c.?
A. The Chinese
B. The Egyptians and Sumerians
C. Hammurabi
D. None of the above
5) The type of comparative analysis described in the previous question is also
sometimes called:
A. Vertical analysis
B. Horizontal analysis
C. Either of the above
D. Neither of the above
6) The name of Japanese currency is the:
A. Yen
B. Yuan
C. Either of the above
D. Neither of the above
7) Yorks President and CEO recognizes that the York Pharmaceutical Company needs
to raise the required capital for expansion. However, the President argues that
borrowing from the bank where they have always done business is the desired way for
York to raise capital. Is the Presidents solution of borrowing from the bank a typical
source of capital for proprietary companies?
A. Yes
B. No
C. Not applicable
8) Stocks that are owned represent:
A. Net worth in the company
B. Equity in the company
C. Both of the above
D. Neither of the above
9) An important part of the finance world is the use of proper terms. In that context,
when debt (loans, mortgages, etc.) is involved, what is the proper spelling of the
following term, or word?
A. Principal
B. Principle
C. Neither of the above
10) The financial segment of a business plan will cover a specific period of time. The
length of this projected period may be:
A. For one year, which may be too short to show True outcomes
B. For ten years, which may be too long to meaningfully forecast
C. Over a range of one year to as much as ten years
D. All of the above
11) Using your computation of cost of goods sold from the previous question, and
further assuming Sales equal $500 and Operating Expenses equal $50, what is the
Earnings Before Tax (EBT) amount?
A. $350
B. $300
C. $250
D. None of the above
12) DRGs serve as the basic classification system for MDCs, or major diagnostic
categories.
A. Correct
B. Not correct
C. Dont know
13) The mission statement will typically cover which of the following?
A. A near-future period
B. A three-to-five-year period
C. As much as ten years from now
D. A & B
E. Any of the above
14) ICD-10 implementation assumes that inpatient coders will lose productivity during
an initial time period. It is further assumed that the coders productivity would:
A. Increase month by month over the first year
B. Increase month by month over the initial six-month period
C. Decrease month by month over the initial six-month period
D. Decrease month by month over the first year
E None of the above
15) The local market area may have either a shortage or an overabundance of available
qualified staff, and this circumstance is reflected in the amount of dollars paid for staff
salaries. In regard to staffing forecasts, this elemental economic fact is always taken
into account in the forecasting assumptions.
A. Correct
B. Not correct
C. Not applicable
16) Electronic transmission standards are:
A. Standards used to facilitate the electronic transmission of healthcare information and
related business transactions
B. The adoption and use of such standards is mandated by law to facilitate electronic
transmission
C. The healthcare industry has to use standard formats for electronic claims and
claims-related transactions
D. A & B
E. A & C
F. B & C
G. All of the above
17) What method relies on an average investment calculation?
A. The present-value analysis method
B. The internal rate of return method
C. The unadjusted rate of return method
D. A & B
E. A & C
F. All of the above
G. Neither of the above
18) The Gross Domestic Product (GDP) measures the output of goods and services
produced by:
A. Investment
B. Labor and property
C. Both of the above
D. Neither of the above
19) Regulatory impact and/or regulatory requirements should be included in the:
A. Service or equipment description
B. Financial segment
C. Organization segment
D. Any of the above
E. None of the above
20) Examples of vendor software and systems that will need revisions due to the change
from ICD-9 to ICD-10 include how many of the following:
A. Physician office systems
B. Contract management programs
C. Claims submission
D. A & B
E. A & C
F. B & C
G. All of the above
21) Standardized measures (mark all that apply):
A. assist in performance measurement
B. aid comparability
C. are necessary for electronic medical records input
D. all of the above
E. A and B only
22) Which type of lease must be capitalized?
A. An operating lease
B. A financial lease
C. Either of the above
D. Neither of the above
23) Costs that can be traced are considered to be:
A. Direct costs
B. Indirect costs
C. Supplementary costs
D. Primary costs
E. None of the above
24) Mission, Vision and Value Statements can recognize:
A. a financial emphasis that is important to the organization
B. the special status or focus of the organization
C. legislation that restricts activities of the organization
D. all of the above
E. (A) and (C) only
F. (A) and (B) only
G. none of the above
25) The manager with a process viewpoint generally:
A. Is responsible for clinical outcomes
B. Is responsible for the reporting function of the organization
C. Is responsible for data accumulation
D. All of the above
E. None of the above
26) Payer mix:
A. Represents the various proportions of revenues that are realized from different types
of
payers
B. Is a measure often included in a healthcare organizations profile
C. Is called payer mix in part because the sources of healthcare revenue are typically
called payers
D. All of the above
E. None of the above
27) In regard to strategic planning by agencies in the U.S. federal government, how
many of the following statements are correct?
A. Agency performance plans are required
B. Agency performance reports are required
C. Requirements make the strategic plan operational because they hold the agencies
accountable
D. Unmet goals may require a performance improvement plan
E. A & B
F. C & D
G. A, B & C
H. All of the above
28) When performing variance analysis, it is common practice to also obtain a proof
total. The applicable proof total is:
A. Computed differently for two-variance analysis versus three-variance analysis
B. Computed the same for two-variance analysis versus three-variance analysis
C. May vary under different circumstances
D. Not applicable
29) Accounting primarily intended for outside, or third party, use:
A. Is known as financial accounting
B. Is known as managerial accounting
C. Emphasizes external reporting
D. Requires the use of generally accepted accounting principles
E. A, C & D
F. A & C
G B & C
H. B, C & D
30) To arrive at an estimated ending inventory figure:
A. An estimated cost of goods sold is subtracted from cost of goods available for sale
B. Beginning inventory plus purchases equals cost of goods available for sale
C. A percentage of sales is typically used as the estimated cost of goods sold
D. All of the above
31) Quarterly reports and statistics are called “interim reports” and generally contain
raw data.
32) The type of capital expenditure proposal that may be the most difficult to
accomplish is a proposal to:
A. Acquire capital assets for future use
B. Fund new programs
C. Acquire new equipment
D. None of the above
33) Proceeds from loan on equipment belongs on the:
A. Balance sheet
B. Statement of revenue and expenses
C. Neither of the above
34) Western Nursing Facility is experiencing falling occupancy and resultant losses.
The Western administrator suggests adopting a benchmarking method that studies the
methods and results of their prime competitor, the Golden Age Nursing Facility. Golden
Age, located in the same town, is at nearly 95% occupancy and is profitable. Is
examining your prime competitors methods and results a recognized method of
benchmarking?
A. Yes
B. No
C. Not applicable
35) When comparing how the annualizing method is costed versus how the
scheduled-position method is costed, one method already has the organizations
vacation, holiday, sick pay and other nonproductive days accounted for in the formula
that results in a factor. (Therefore, this factor is then multiplied times the base hourly
rate paid in order to compute cost.) The method that already has nonproductive cost
accounted for in the formula is:
A. The annualizing method
B. The scheduled-position method
C. Neither of the above
36) Within the annual management cycle, raw data:
A. Is typically operating information
B. Is unadjusted
C. Has been adjusted and verified
D. A & B
E. A & C
F. None of the above
37) The master staffing plan for a nursing unit using 8-hour shifts should cover the:
A. Day shift
B. Evening shift
C. Night shift
D. All three shifts within 24 hours
E. None of the above
38) The line chart is one of four basic chart styles.
A. Correct
B. Not correct
C. Not applicable
39) Approaches used to compute full time equivalents (FTEs) include:
A. the schedule position method
B. the annualizing method
C. both of the above
D. neither of the above