(Solution Document) Interest determines how much an amount of money invested today will be worth in the future. True False 2. Because prices are often fixed in the...


  1. Interest determines how much an amount of money invested today will be worth in the future.

 True

 False

2. Because prices are often fixed in the healthcare industry, it is increasingly important to:

              a.           Measure effectiveness

              b.           Measure efficiency

              c.           Control Costs

              d.           None of the above


3. In class we learned that a dollar today is always worth more than a dollar tomorrow. Which selection does not support this position?

              a.           Inflation will increase the buying power of a dollar in the future

              b.           A dollar in hand today is certain whereas a dollar to be received in the future is not.

c.           Investing a dollar today will allow for potentially greater returns that waiting to invest that same dollar in the future

d.           A dollar in hand today can be used to take


advantage of opportunities that may present, as opposed to not having that dollar.


4. Which of the following does not reflect efforts providers have enacted to control the costs of providing care?

a.           Shifting to inpatient services

b.           Implementing more sophisticated cost- accounting systems and information services technologies

              c.           Shifting to outpatient services

              d.           Mergers and acquisitions


5. A hospital offers several outreach and educational programs which positively impact the community in which it serves. Which of the following is not a reason why it would be in the organization's best interest to chronicle each initiative, quantifying community impact where possible?

Community benefit reporting


Tax exempt status justification


Justification of payment in lieu of tax levels


To justify management compensation


6.The from the statement of operations is closed out at the end of the period to on the balance sheet.


7. A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):

              a.           Statement of Operations

              b.           Statement of Changes in Net Assets

              c.           Statement of Cash Flows

              d.           Balance Sheet



8. A clinic employs 10 staff. 5 staff work 40 hours a week, 3 staff work 20 hours a week and 2 staff work 16 hours a week. How many Full Time Equivalents does the staff employ?

              a.           10.0 FTEs

              b.           5.5 FTEs

              c.           7.3 FTEs

              d.           6.5 FTEs

9. . True or False? It is not uncommon for different plans to pay different contractual rates for the same service.

 True

 False


10 .A hospital that is caring for a Medicare patient on an inpatient basis generally can increase its reimbursement by providing additional services.

 True

 False


11. Fixed costs per unit change with respect to volume.

 True

 False


12. The result of a favorable variance is less income received than budgeted.

 True

 False


13. Budget variances should not occur with approved budgets.

 True

 False


14. One of the advantages of a nonprofit organization compared with an investor-owned company is that the investor-owned company is subject to federal income taxes.

 True

 False


15. A hospital that is caring for a Medicare patient on an inpatient basis generally can increase its reimbursement by providing additional services.

 True

 False


16. True or False? It is not uncommon for different plans to pay different contractual rates for the same service.

 True

 False


17. . Common variances used by health care organizations include:

              a.           Revenue variance

              b.           Traditional profit center

              c.           Expense variance

              d.           a. and c.

 







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