HCAD 375 Exam 1 Questions & Answers
2024/2025
Value = - ANSWERSQuality / Price
Goals of financial management - ANSWERS- Make organizations work more effectively
- Revenue --> Facility --> Expenses
How do financial management goals work in a health care organization - ANSWERS•Understand how
various elements of finance fit together
•Understand various pieces and their relationship to each other.
Managers viewpoint - ANSWERSProcess
financial
clinical
4 elements of financial management - ANSWERS-Planning
•Identify steps that must be taken to accomplish and organizations objectives
-Controlling
•Make sure that each area of the organization is following the plans that have been established
-Organizing and directing
•Decide how to use organizational resources to most effectively carry out established plans
-Decision Making
•Make choices among available alternatives
Profit-oriented - ANSWERS(aka "proprietary)
- pay all taxes
- Corporations, partnerships, or individuals
,Non-profit-orientated - ANSWERS(aka "not-for-profit)
- do not pay income, proper, or sales taxes (do pay payroll taxes)
- Voluntary or government
> Stand-alone or part of a larger organization
Organizational charts illustrate what? - ANSWERS•Structure
•Degree of centralization
•Responsibility of managers
•Formal lines of communication and reporting
Two types of accounting - ANSWERSFinancial
Managerial
Financial accounting - ANSWERS•Generally, for outside, or third-party, use
•Emphasizes external reporting
•Must use GAAP
•Retrospective
•Records transactions
•Classifies transactions
•Reconciles records
•Summarizes transactions
•Presents financial data
Managerial accounting - ANSWERS•Generally, for inside, or internal, use
•Used by managers
•Not bound by GAAP
•Prospective as well as retrospective
•Compares results against goals
, •Determines reasons for variations
•Helps identify corrective action
•Forecasting and planning
•Analyses information
Information systems - ANSWERSGathers the evidence
accounting system - ANSWERSrecords the evidence
reporting system - ANSWERSproduces reports of the effects
Structure of the information system - ANSWERS-identify the inputs
-identify the outputs
Flow sheet illustrates - ANSWERS-Flow of activities that capture information
-Who is responsible for what information as it enters the system
Role of the journal and ledger - ANSWERSRecording and reporting financial transactions
Sequence of a journal or ledger - ANSWERS•Record transactions chronologically in journals
•Periodically summarize transactions by account into ledger
•Review, adjust, balance through the trial
•Create reports (financial statements)
Subsidiary journal example - ANSWERS•Cash recipients journal
•Cash disbursements journal
•Payroll journal
•Accounts receivable journal
•Accounts payable journal
2024/2025
Value = - ANSWERSQuality / Price
Goals of financial management - ANSWERS- Make organizations work more effectively
- Revenue --> Facility --> Expenses
How do financial management goals work in a health care organization - ANSWERS•Understand how
various elements of finance fit together
•Understand various pieces and their relationship to each other.
Managers viewpoint - ANSWERSProcess
financial
clinical
4 elements of financial management - ANSWERS-Planning
•Identify steps that must be taken to accomplish and organizations objectives
-Controlling
•Make sure that each area of the organization is following the plans that have been established
-Organizing and directing
•Decide how to use organizational resources to most effectively carry out established plans
-Decision Making
•Make choices among available alternatives
Profit-oriented - ANSWERS(aka "proprietary)
- pay all taxes
- Corporations, partnerships, or individuals
,Non-profit-orientated - ANSWERS(aka "not-for-profit)
- do not pay income, proper, or sales taxes (do pay payroll taxes)
- Voluntary or government
> Stand-alone or part of a larger organization
Organizational charts illustrate what? - ANSWERS•Structure
•Degree of centralization
•Responsibility of managers
•Formal lines of communication and reporting
Two types of accounting - ANSWERSFinancial
Managerial
Financial accounting - ANSWERS•Generally, for outside, or third-party, use
•Emphasizes external reporting
•Must use GAAP
•Retrospective
•Records transactions
•Classifies transactions
•Reconciles records
•Summarizes transactions
•Presents financial data
Managerial accounting - ANSWERS•Generally, for inside, or internal, use
•Used by managers
•Not bound by GAAP
•Prospective as well as retrospective
•Compares results against goals
, •Determines reasons for variations
•Helps identify corrective action
•Forecasting and planning
•Analyses information
Information systems - ANSWERSGathers the evidence
accounting system - ANSWERSrecords the evidence
reporting system - ANSWERSproduces reports of the effects
Structure of the information system - ANSWERS-identify the inputs
-identify the outputs
Flow sheet illustrates - ANSWERS-Flow of activities that capture information
-Who is responsible for what information as it enters the system
Role of the journal and ledger - ANSWERSRecording and reporting financial transactions
Sequence of a journal or ledger - ANSWERS•Record transactions chronologically in journals
•Periodically summarize transactions by account into ledger
•Review, adjust, balance through the trial
•Create reports (financial statements)
Subsidiary journal example - ANSWERS•Cash recipients journal
•Cash disbursements journal
•Payroll journal
•Accounts receivable journal
•Accounts payable journal
