MGMA UPDATED SET ANSWERS AND QUESTIONS
SET A+
✔✔The capital budget of a medical practice does NOT include which of the following? -
✔✔Cost of operating lease of MRI equipment
✔✔Which of the following is NOT an example of the information needed to develop a
revenue budget? - ✔✔The prior year's payer mix and fee schedule
✔✔What is an example of a variable cost? - ✔✔Benefits
✔✔Which of the following is NOT associated with a break even analysis equation? -
✔✔Annual profit
✔✔Which of the following is a correct definition of variable costs? - ✔✔Costs directly
proportional to output.
✔✔In a fee for service setting, after reaching the break even point in a break even point
in a break analysis, what variable needs to be increases to add profit? - ✔✔Volume
✔✔Recording revenue when services are performed or when products are delivered is
called what? - ✔✔Accrual basis accounting
✔✔Which of the following is used to best match the timing o revenues and expenses? -
✔✔Accrual basis accounting
✔✔Cost accounting can be used for all of the following reasons EXCEPT to: -
✔✔Quantify collection ratios
✔✔In a cash based accounting system, accounts receivable is: - ✔✔Not recorded on
the balance sheet.
, ✔✔What is operating income? - ✔✔Gross charges minus contract adjustments, variable
and fixed costs.
✔✔Which of the following is a major problem created by relying on a cash-only
accounting system? - ✔✔Revenues and expenses are usually mismatched among one
or more accounting periods.
✔✔What does a closed shop agreement provide for? - ✔✔The employers must hire
union members only.
✔✔What does the staffing ratio for medical groups commonly refer to? - ✔✔Number of
full time equivalent staff to full time equivalent physicians?
✔✔Which of the following is true of employees who are employed at will? - ✔✔They can
be terminated without cause.
✔✔Employee discrimination laws become applicable at which point in the employment
process? - ✔✔When applicants are interviewed?
✔✔What is the internal revenue service form to be issued for amounts paid to
independent contractors for services provided? - ✔✔Form 1099 misc
✔✔A written job offer of employment to a candidate may not be contingent upon which
of the following? - ✔✔Verification of the applicants credit history
✔✔Which of the following is not commonly covered during new employment
orientation? - ✔✔Review of salary calculations
✔✔Employee turnover rates are calculated by a ratio of the number of total employee
and the number of employees who have: - ✔✔Terminated
✔✔A well designed grievances administration system begins with what? - ✔✔sound
employment policies
✔✔An employee assistance program is not a mandated employee benefit but can be
very beneficial in reducing employee risk and improving productivity. Employees may
use an EAP for counseling or further referrals for any of the following EXCEPT -
✔✔Religious counseling
✔✔Perceived inequity issues that may prompt some employees to leave a practice are
possible result of what? - ✔✔Prioritizing recruitment of additional staff over training
current employees.
SET A+
✔✔The capital budget of a medical practice does NOT include which of the following? -
✔✔Cost of operating lease of MRI equipment
✔✔Which of the following is NOT an example of the information needed to develop a
revenue budget? - ✔✔The prior year's payer mix and fee schedule
✔✔What is an example of a variable cost? - ✔✔Benefits
✔✔Which of the following is NOT associated with a break even analysis equation? -
✔✔Annual profit
✔✔Which of the following is a correct definition of variable costs? - ✔✔Costs directly
proportional to output.
✔✔In a fee for service setting, after reaching the break even point in a break even point
in a break analysis, what variable needs to be increases to add profit? - ✔✔Volume
✔✔Recording revenue when services are performed or when products are delivered is
called what? - ✔✔Accrual basis accounting
✔✔Which of the following is used to best match the timing o revenues and expenses? -
✔✔Accrual basis accounting
✔✔Cost accounting can be used for all of the following reasons EXCEPT to: -
✔✔Quantify collection ratios
✔✔In a cash based accounting system, accounts receivable is: - ✔✔Not recorded on
the balance sheet.
, ✔✔What is operating income? - ✔✔Gross charges minus contract adjustments, variable
and fixed costs.
✔✔Which of the following is a major problem created by relying on a cash-only
accounting system? - ✔✔Revenues and expenses are usually mismatched among one
or more accounting periods.
✔✔What does a closed shop agreement provide for? - ✔✔The employers must hire
union members only.
✔✔What does the staffing ratio for medical groups commonly refer to? - ✔✔Number of
full time equivalent staff to full time equivalent physicians?
✔✔Which of the following is true of employees who are employed at will? - ✔✔They can
be terminated without cause.
✔✔Employee discrimination laws become applicable at which point in the employment
process? - ✔✔When applicants are interviewed?
✔✔What is the internal revenue service form to be issued for amounts paid to
independent contractors for services provided? - ✔✔Form 1099 misc
✔✔A written job offer of employment to a candidate may not be contingent upon which
of the following? - ✔✔Verification of the applicants credit history
✔✔Which of the following is not commonly covered during new employment
orientation? - ✔✔Review of salary calculations
✔✔Employee turnover rates are calculated by a ratio of the number of total employee
and the number of employees who have: - ✔✔Terminated
✔✔A well designed grievances administration system begins with what? - ✔✔sound
employment policies
✔✔An employee assistance program is not a mandated employee benefit but can be
very beneficial in reducing employee risk and improving productivity. Employees may
use an EAP for counseling or further referrals for any of the following EXCEPT -
✔✔Religious counseling
✔✔Perceived inequity issues that may prompt some employees to leave a practice are
possible result of what? - ✔✔Prioritizing recruitment of additional staff over training
current employees.
