NURS 523
Financial & Resource Management for Nurse
Leaders
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following is a primary goal of financial
management in healthcare?
- A. Increasing healthcare costs
- B. Ensuring financial sustainability
- C. Limiting access to healthcare services
- D. Reducing the quality of care
- ANS: B. Ensuring financial sustainability
- Rationale: Financial management in healthcare aims to
ensure the financial sustainability of healthcare organizations
while providing quality care.
©2024/2025
,2. What is the main purpose of budgeting in healthcare
organizations?
- A. To increase healthcare costs
- B. To allocate resources efficiently
- C. To limit patient care
- D. To reduce staff salaries
- ANS: B. To allocate resources efficiently
- Rationale: Budgeting helps healthcare organizations
allocate resources efficiently to meet their financial and
operational goals.
3. Which of the following is an example of a capital expenditure
in healthcare?
- A. Staff salaries
- B. Medical supplies
- C. Construction of a new facility
- D. Utility bills
- ANS: C. Construction of a new facility
- Rationale: Capital expenditures are long-term investments,
such as the construction of new facilities, that provide benefits
over several years.
©2024/2025
,4. Which financial statement provides a snapshot of an
organization's financial position at a specific point in time?
- A. Income statement
- B. Balance sheet
- C. Cash flow statement
- D. Budget report
- ANS: B. Balance sheet
- Rationale: The balance sheet provides a snapshot of an
organization's financial position, including assets, liabilities, and
equity, at a specific point in time.
5. What is the primary focus of resource management in
healthcare?
- A. Increasing healthcare costs
- B. Optimizing the use of resources
- C. Limiting access to healthcare services
- D. Reducing the quality of care
- ANS: B. Optimizing the use of resources
- Rationale: Resource management in healthcare focuses on
optimizing the use of resources, such as staff, equipment, and
supplies, to provide quality care efficiently.
©2024/2025
, Fill-in-the-Blank Questions
6. The process of planning and controlling financial resources in
healthcare is known as __________.
- ANS: Financial management
- Rationale: Financial management involves planning and
controlling financial resources to ensure the financial
sustainability of healthcare organizations.
7. The __________ statement provides a summary of an
organization's revenues and expenses over a specific period.
- ANS: Income
- Rationale: The income statement summarizes an
organization's revenues and expenses over a specific period,
showing its financial performance.
8. The allocation of resources to achieve organizational goals is
a key function of __________.
- ANS: Budgeting
- Rationale: Budgeting involves allocating resources to
achieve organizational goals and ensure efficient operations.
9. A __________ expenditure is a long-term investment that
provides benefits over several years.
©2024/2025
Financial & Resource Management for Nurse
Leaders
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following is a primary goal of financial
management in healthcare?
- A. Increasing healthcare costs
- B. Ensuring financial sustainability
- C. Limiting access to healthcare services
- D. Reducing the quality of care
- ANS: B. Ensuring financial sustainability
- Rationale: Financial management in healthcare aims to
ensure the financial sustainability of healthcare organizations
while providing quality care.
©2024/2025
,2. What is the main purpose of budgeting in healthcare
organizations?
- A. To increase healthcare costs
- B. To allocate resources efficiently
- C. To limit patient care
- D. To reduce staff salaries
- ANS: B. To allocate resources efficiently
- Rationale: Budgeting helps healthcare organizations
allocate resources efficiently to meet their financial and
operational goals.
3. Which of the following is an example of a capital expenditure
in healthcare?
- A. Staff salaries
- B. Medical supplies
- C. Construction of a new facility
- D. Utility bills
- ANS: C. Construction of a new facility
- Rationale: Capital expenditures are long-term investments,
such as the construction of new facilities, that provide benefits
over several years.
©2024/2025
,4. Which financial statement provides a snapshot of an
organization's financial position at a specific point in time?
- A. Income statement
- B. Balance sheet
- C. Cash flow statement
- D. Budget report
- ANS: B. Balance sheet
- Rationale: The balance sheet provides a snapshot of an
organization's financial position, including assets, liabilities, and
equity, at a specific point in time.
5. What is the primary focus of resource management in
healthcare?
- A. Increasing healthcare costs
- B. Optimizing the use of resources
- C. Limiting access to healthcare services
- D. Reducing the quality of care
- ANS: B. Optimizing the use of resources
- Rationale: Resource management in healthcare focuses on
optimizing the use of resources, such as staff, equipment, and
supplies, to provide quality care efficiently.
©2024/2025
, Fill-in-the-Blank Questions
6. The process of planning and controlling financial resources in
healthcare is known as __________.
- ANS: Financial management
- Rationale: Financial management involves planning and
controlling financial resources to ensure the financial
sustainability of healthcare organizations.
7. The __________ statement provides a summary of an
organization's revenues and expenses over a specific period.
- ANS: Income
- Rationale: The income statement summarizes an
organization's revenues and expenses over a specific period,
showing its financial performance.
8. The allocation of resources to achieve organizational goals is
a key function of __________.
- ANS: Budgeting
- Rationale: Budgeting involves allocating resources to
achieve organizational goals and ensure efficient operations.
9. A __________ expenditure is a long-term investment that
provides benefits over several years.
©2024/2025
