Depreciation expense that is calculated in accordance with GAAP using the straight-line
method is obtained by:
a. Dividing the historical cost of the asset by the number of years of its estimated useful life.
b. Dividing the historical cost of the asset by the annual cost of maintaining the asset.
c. Dividing the present-day value of the asset by the number of years of its estimated useful
life.
d. Dividing the historical cost of the asset (less its estimated salvage value) by the number of
years of its estimated useful life. - ANSWER D
What methods of payment are the most preferable and the least preferable to the provider's
point of view?
a. Charges minus a discount; cost plus a percentage for growth
b. Cost; per diem
c. charges; cost
d. charges; capitation - ANSWER D
As to the Manage Care Continuum, from the least control to the most control, which of the
following orders is correct?
a. Managed Indemnity->Service Plans->Closed-Panel HMO's
b. Closed-Panel HMO's->Service Plans->Managed indemnity
c. Service Plans->Closed-Panel HMO's->Open-Panel HMO's
d. Point-of-Service Plans->Closed-Panel HMO's->Preferred Provider Plans - ANSWER A
1
, The prerequisites for building the operating budget include all but one of the following:
a. Well-defined chart of accounts
b. Sound organizational chart
c. Prompt and accurate accounting system
d. Defined short payback period
e. Comprehensive management information system
f. Budget director and budget committee
g. Budget manual and calendar - ANSWER D
Of the four design characteristics of budgeting, which characteristic integrates budgets into
one document?
a. Incremental versus Zero Based Budgeting
b. Comprehensive versus Limited in-Scope budgeting
c. Fixed versus Flexible Budgeting
d. Discrete Versus continuous Budgeting - ANSWER B
Which of the following is not a step in the capital budgeting processes:
a. Identify and prioritize all of the requests
b. Projecting bad debt for the year
c. Project cash flows
d. Perform financial analysis - ANSWER B. Projecting bad debt for the year is not part
of the "capital" budgeting process
What organization sets regulations for financial accounting:
a. Financial Accounting Standards Board
b. American Institute of Certified Public Accountants
c. Security and Exchange Commission
d. Healthcare Financial Management Association - ANSWER C
2
method is obtained by:
a. Dividing the historical cost of the asset by the number of years of its estimated useful life.
b. Dividing the historical cost of the asset by the annual cost of maintaining the asset.
c. Dividing the present-day value of the asset by the number of years of its estimated useful
life.
d. Dividing the historical cost of the asset (less its estimated salvage value) by the number of
years of its estimated useful life. - ANSWER D
What methods of payment are the most preferable and the least preferable to the provider's
point of view?
a. Charges minus a discount; cost plus a percentage for growth
b. Cost; per diem
c. charges; cost
d. charges; capitation - ANSWER D
As to the Manage Care Continuum, from the least control to the most control, which of the
following orders is correct?
a. Managed Indemnity->Service Plans->Closed-Panel HMO's
b. Closed-Panel HMO's->Service Plans->Managed indemnity
c. Service Plans->Closed-Panel HMO's->Open-Panel HMO's
d. Point-of-Service Plans->Closed-Panel HMO's->Preferred Provider Plans - ANSWER A
1
, The prerequisites for building the operating budget include all but one of the following:
a. Well-defined chart of accounts
b. Sound organizational chart
c. Prompt and accurate accounting system
d. Defined short payback period
e. Comprehensive management information system
f. Budget director and budget committee
g. Budget manual and calendar - ANSWER D
Of the four design characteristics of budgeting, which characteristic integrates budgets into
one document?
a. Incremental versus Zero Based Budgeting
b. Comprehensive versus Limited in-Scope budgeting
c. Fixed versus Flexible Budgeting
d. Discrete Versus continuous Budgeting - ANSWER B
Which of the following is not a step in the capital budgeting processes:
a. Identify and prioritize all of the requests
b. Projecting bad debt for the year
c. Project cash flows
d. Perform financial analysis - ANSWER B. Projecting bad debt for the year is not part
of the "capital" budgeting process
What organization sets regulations for financial accounting:
a. Financial Accounting Standards Board
b. American Institute of Certified Public Accountants
c. Security and Exchange Commission
d. Healthcare Financial Management Association - ANSWER C
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