Multiple choices Ch 01-06 Financial
MGMT Exam Questions and Answers
Graded A+
Ch 01 - 1
Which of the following statements about finance, accounting, and financial
management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help managers make
better decisions.
c. Financial management involves the measurement, in financial terms, of
operational events that affect the resources and financing of an organization.
d. The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
e. Financial management is of no value in decision making. - Correct answer-D
Ch 01 - 2
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,Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management - Correct answer-E
Ch 01 - 3
True or False: The four Cs (character, capability, charisma, and courtesy)
summarize the attributes needed to be a good financial manager.
a. True
b. False - Correct answer-B
Ch 01 - 4
True or False: The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a multitude of
activities such as cost containment, payer negotiations, and joint venture activities.
a. True
b. False - Correct answer-A
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, Ch 01 - 5
Which of the following statements about the finance department at large healthcare
organizations is most correct?
a. The department is headed by the chief financial officer (CFO) (sometimes called
the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
d. The comptroller and treasurer often have managers under them responsible for
specific functions such as patient accounts management and cash management.
e. All of the above statements are correct. - Correct answer-E
Ch 01 - 6
Which of the following statements about hospitals is most correct?
a. Patients at general acute care hospitals typically have long patient stays, often 30
or more days.
b. The number of specialty hospitals has declined over the last three decades.
c. The optimal size for a hospital is roughly 50 beds.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
MGMT Exam Questions and Answers
Graded A+
Ch 01 - 1
Which of the following statements about finance, accounting, and financial
management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help managers make
better decisions.
c. Financial management involves the measurement, in financial terms, of
operational events that affect the resources and financing of an organization.
d. The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
e. Financial management is of no value in decision making. - Correct answer-D
Ch 01 - 2
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management - Correct answer-E
Ch 01 - 3
True or False: The four Cs (character, capability, charisma, and courtesy)
summarize the attributes needed to be a good financial manager.
a. True
b. False - Correct answer-B
Ch 01 - 4
True or False: The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a multitude of
activities such as cost containment, payer negotiations, and joint venture activities.
a. True
b. False - Correct answer-A
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Ch 01 - 5
Which of the following statements about the finance department at large healthcare
organizations is most correct?
a. The department is headed by the chief financial officer (CFO) (sometimes called
the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
d. The comptroller and treasurer often have managers under them responsible for
specific functions such as patient accounts management and cash management.
e. All of the above statements are correct. - Correct answer-E
Ch 01 - 6
Which of the following statements about hospitals is most correct?
a. Patients at general acute care hospitals typically have long patient stays, often 30
or more days.
b. The number of specialty hospitals has declined over the last three decades.
c. The optimal size for a hospital is roughly 50 beds.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
