HCAD 375 EXAM 3 QUESTIONS WITH CORRECT ANSWERS LATEST 2025

HCAD 375 EXAM 3 QUESTIONS WITH CORRECT ANSWERS LATEST 2025 Describe 3 types of common forecasts used in health care budgeting - Answers -staffing forecast -revenue forecast -operating expense forecast What type of assumptions and information are necessary to generate a revenue forecast? - Answers -utilization changes -patient mix changes -rate changes -capacity/volume In health care what commonly contributes to capacity limitations? - Answers -space and equipment availability -staffing availability What are the objectives/uses of a budget? - Answers measure financial performance determine growth set financial expectations What is Authoritarian budgeting? Advantages and disadvantages? - Answers Given budget by higher up. advantage: faster disadvantage: you don't have a say What is Participatory budgeting? Advantages and disadvantages? - Answers You make budget based on departments. advantage: creates buy in increases disadvantage: harder and takes longer to create What is Incremental/Decremental budgeting? Advantages and disadvantages? - Answers start with last years budget and increase or decrease it advantage: easy and fast disadvantage: incentive for each dept to spend their max budget amount What is Zero-Based budgeting? Advantages and disadvantages? - Answers Make budget from scratch each year advantage: useful for major budget adjustments disadvantage: hard & time consuming to create Who is involved in participatory budgeting? - Answers Board, top management, dept heads, physician What is the participatory budgeting process? - Answers strategic planning, environmental analysis, focused environment assessment, programing resource budget -revisions -review -approval What is the typical timeframe for participatory budgeting? - Answers first part takes 5-6 months second part takes 1-3 months What is capital budget used for? - Answers Big expenses ex: new beds Which financial statement do LTC administrators use most often when analyzing monthly financial activities? - Answers Income statement The "_______ _______ Rule" refers to that if a bookkeeping entry is made to one side of the accounting equation (A= L+E), and corresponding entry must be made to keep the equation in balance. - Answers Double Entry Give an example of an "accrued expense". - Answers Employee wages When might an accrued expense have to be accounted for? - Answers expense that is recognized on the books before it has been paid. The expense is recorded in the accounting period in which it is incurred.