CNML Financial Management Exam Questions And
Correct Answers
Balance Sheet - ANSWER statement of the assets, liabilities, and capital of an
organization at a particular point in time
Revenue - ANSWER operating revenue derived from primary business activities
gross operating revenue - ANSWER total revenue earned with no expenses removed
net revenue - ANSWER gross revenue less all expenses
operational expenses - ANSWER salaries, benefits, non-productive time, overtime,
agency costs, overhead orientation and recruitment costs, minor equipment, supplies,
linen, food, and other contract services
budget variance - ANSWER difference between expected budget targets versus actual
budget results
gross changes - ANSWER amount an organization bills if they are paid in full
breakeven - ANSWER revenue equals expenses
non-operating revenue - ANSWER revenue from services outside the core services.
(example - investment income, durable medical equiptment, retail services, joint
ventures).
variable costs - ANSWER costs that fluctuate with volume
, fixed costs - ANSWER costs that don't fluctuate with volume
market share - ANSWER % of total volue for a health system for specific volumes within
a health system as compared w/ competitors in the same geographical "market" area
mix - ANSWER percent of revenue derived from each payer source
return on investment - ANSWER profit or loss made from an investment as a proportion
of the cost of the investment
Net Profit/Total Investment x 100
Investment Income - ANSWER Income earned from interest, dividends and capital gains
Revenue Cycle Management-ANSWER Revenue tracking process that begins with the
initial appointment or encounter and extends to the final payment of the bill balance
Charge Capture-ANSWER Collection of data regarding services provided to patients;
data is included on a claims document to be submitted to payers and insurance carriers
for reimbursement of those services.
Cost based operation budget - ANSWER The cost based or historically derived
operational budget is the most common and is based upon analysis of historical trends
over time, then projecting or forecasting incremental change for the upcoming year.
Zero Based Operational Budget - ANSWER The zero-based budgeting starts from zero.
All the expenses are justified and approved for the specific budget period. A zero-based
budget is not based on the past budgets.
Capital Budget - ANSWER The capital budget is needed to support growth, invest in
long-term assets, replace the old assets, purchase new equipment, and technologies.
Correct Answers
Balance Sheet - ANSWER statement of the assets, liabilities, and capital of an
organization at a particular point in time
Revenue - ANSWER operating revenue derived from primary business activities
gross operating revenue - ANSWER total revenue earned with no expenses removed
net revenue - ANSWER gross revenue less all expenses
operational expenses - ANSWER salaries, benefits, non-productive time, overtime,
agency costs, overhead orientation and recruitment costs, minor equipment, supplies,
linen, food, and other contract services
budget variance - ANSWER difference between expected budget targets versus actual
budget results
gross changes - ANSWER amount an organization bills if they are paid in full
breakeven - ANSWER revenue equals expenses
non-operating revenue - ANSWER revenue from services outside the core services.
(example - investment income, durable medical equiptment, retail services, joint
ventures).
variable costs - ANSWER costs that fluctuate with volume
, fixed costs - ANSWER costs that don't fluctuate with volume
market share - ANSWER % of total volue for a health system for specific volumes within
a health system as compared w/ competitors in the same geographical "market" area
mix - ANSWER percent of revenue derived from each payer source
return on investment - ANSWER profit or loss made from an investment as a proportion
of the cost of the investment
Net Profit/Total Investment x 100
Investment Income - ANSWER Income earned from interest, dividends and capital gains
Revenue Cycle Management-ANSWER Revenue tracking process that begins with the
initial appointment or encounter and extends to the final payment of the bill balance
Charge Capture-ANSWER Collection of data regarding services provided to patients;
data is included on a claims document to be submitted to payers and insurance carriers
for reimbursement of those services.
Cost based operation budget - ANSWER The cost based or historically derived
operational budget is the most common and is based upon analysis of historical trends
over time, then projecting or forecasting incremental change for the upcoming year.
Zero Based Operational Budget - ANSWER The zero-based budgeting starts from zero.
All the expenses are justified and approved for the specific budget period. A zero-based
budget is not based on the past budgets.
Capital Budget - ANSWER The capital budget is needed to support growth, invest in
long-term assets, replace the old assets, purchase new equipment, and technologies.
