Healthcare Finance Final PASSED Exam
Questions and CORRECT Answers
Profitability ratios include: - Correct Answer- - Operating Margins
- Return of Total Assets
Return on total assets may be computed as: - Correct Answer- Earnings before interest and
taxes divided by total assets
The Liabilities to Fund Balance ratio is: - Correct Answer- - Quick indicator total debt load
- Debt to Net-worth ratio
Total liabilities/unrestricted fund balance
Profitability ratios include - Correct Answer- Operating Margins
Return of Total Assets
Return on total assets may be computed as: - Correct Answer- Earnings before interest and
taxes divided by total assets
The Liabilities to Fund Balance ratio is: - Correct Answer- Quick indicator total debt load
Debt to Net-worth ratio
Solvency ratios: - Correct Answer- will of organization
annual obligation to long term debt
Ability of origination to pay annual obligations on a long-term debt, org. ability to have
enough resources of money to meet long term obligations.
Evaluating the use of money is possible through computation of: - Correct Answer- 1.
Unadjusted rate of return
2. Present value analysis
, 3. Internal rate of return
4. Payback period
Average annual net income divided by original investment amount equals: - Correct Answer-
Equals rate of return.
A payback period is the length of time required for the cash coming in from an investment to
equal the: - Correct Answer- The amount of cash spent when the investment was required—
the amount of cash originally spent
The payback period concept is used extensively in evaluating whether to invest in: - Correct
Answer- Equipment plan MRI machines
The concept of present-value analysis is based on the fact that: - Correct Answer- On the time
value of the money
Value of the dollar today, is more than the value past
9-B
10-B
13- A - Correct Answer-
Common sizing: - Correct Answer- Common sizing puts data/info on the same relative basis.
Forecast assumptions can be determined by: - Correct Answer- 1.Trend Analysis
2.Utilization changes
3.Payer Changes
Common sizing is sometimes called: - Correct Answer- Vertical analysis
Trend analysis is sometimes called: - Correct Answer- Horizontal Analysis
Questions and CORRECT Answers
Profitability ratios include: - Correct Answer- - Operating Margins
- Return of Total Assets
Return on total assets may be computed as: - Correct Answer- Earnings before interest and
taxes divided by total assets
The Liabilities to Fund Balance ratio is: - Correct Answer- - Quick indicator total debt load
- Debt to Net-worth ratio
Total liabilities/unrestricted fund balance
Profitability ratios include - Correct Answer- Operating Margins
Return of Total Assets
Return on total assets may be computed as: - Correct Answer- Earnings before interest and
taxes divided by total assets
The Liabilities to Fund Balance ratio is: - Correct Answer- Quick indicator total debt load
Debt to Net-worth ratio
Solvency ratios: - Correct Answer- will of organization
annual obligation to long term debt
Ability of origination to pay annual obligations on a long-term debt, org. ability to have
enough resources of money to meet long term obligations.
Evaluating the use of money is possible through computation of: - Correct Answer- 1.
Unadjusted rate of return
2. Present value analysis
, 3. Internal rate of return
4. Payback period
Average annual net income divided by original investment amount equals: - Correct Answer-
Equals rate of return.
A payback period is the length of time required for the cash coming in from an investment to
equal the: - Correct Answer- The amount of cash spent when the investment was required—
the amount of cash originally spent
The payback period concept is used extensively in evaluating whether to invest in: - Correct
Answer- Equipment plan MRI machines
The concept of present-value analysis is based on the fact that: - Correct Answer- On the time
value of the money
Value of the dollar today, is more than the value past
9-B
10-B
13- A - Correct Answer-
Common sizing: - Correct Answer- Common sizing puts data/info on the same relative basis.
Forecast assumptions can be determined by: - Correct Answer- 1.Trend Analysis
2.Utilization changes
3.Payer Changes
Common sizing is sometimes called: - Correct Answer- Vertical analysis
Trend analysis is sometimes called: - Correct Answer- Horizontal Analysis
