NURSE EXECUTIVE CERTIFICATION
EXAMINATION TEST 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Assets . Answer: The financial resources, including cash,
investments, and property, that an organization possesses or receives.
◉ Average Length of Stay (ALOS) . Answer: The average duration that
patients spend in a healthcare facility, such as a hospital, before being
discharged.
◉ ADC (Average Daily Census) . Answer: The average number of
patients on an in-patient unit at a certain point in time for a set period of
time (week, month, year) almost always collected at midnight.
◉ Bad Debt . Answer: Losses due to uninsured or not collected
◉ Break-even . Answer: The point at which cost is covered by revenue.
This concept is often used during decision making process for
equipment purchasing and program development.
,◉ Capital Budget . Answer: Long range planning tool for organizations;
also refers to items that cost over a certain amount of money $500,
$1000, $5000
◉ Capitation . Answer: Payment arrangement where providers are paid
a pre-arranged amount for each person/member asssigned to them over a
certain period of time often whether they use it or not.
◉ Charitable Care . Answer: Healthcare provided for free or at reduced
prices to low income patients
◉ CMI . Answer: Case Mix Index (CMI) is the average relative DRG
weight of a hospital's inpatient discharges, calculated by summing the
Medicare Severity-Diagnosis Related Group (MS-DRG) weight for each
discharge and dividing the total by the number of discharges.
◉ What does CMI reflect? . Answer: Reflects the diversity, clinical
complexity and resource needs of all the patients in the hospital.
◉ What does a higher CMI indicate? . Answer: Indicates a more
complex and resource-intensive case load.
◉ Contribution Margin . Answer: The profit that is contributed by a cost
center without the indirect costs.
, ◉ Cost-Benefit Ratio . Answer: A way for an organization or
department to weigh/analyze the cost of an item/project/program with
the benefit. Analysis may include non-monetary value such as charity
care and community benefit.
◉ Depreciation . Answer: Amount written off annually on a piece of
equipment and buildings.
◉ Direct Costs . Answer: Costs that can be attributed to a specific item
or cost in a department's or projects budget. Examples include salaries,
admission kits etc.
◉ DRG (Diagnosis Related Groups) . Answer: Categories of diagnoses
defined by Medicare for payment purposes
◉ Fiscal year . Answer: The period of time or cycle that a 12-month
budget addresses. Most common cycles include calendar year January
1st-Dec 31st or academic year Sept 1-Aug 31st
◉ Fixed Expenses . Answer: Remains the same regardless of the
number of patients such as mortgage or loan payments
◉ Forecasting . Answer: The process by which a department or
organization translates future needs of a new program or budget into
resource needs and financial terms.
EXAMINATION TEST 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Assets . Answer: The financial resources, including cash,
investments, and property, that an organization possesses or receives.
◉ Average Length of Stay (ALOS) . Answer: The average duration that
patients spend in a healthcare facility, such as a hospital, before being
discharged.
◉ ADC (Average Daily Census) . Answer: The average number of
patients on an in-patient unit at a certain point in time for a set period of
time (week, month, year) almost always collected at midnight.
◉ Bad Debt . Answer: Losses due to uninsured or not collected
◉ Break-even . Answer: The point at which cost is covered by revenue.
This concept is often used during decision making process for
equipment purchasing and program development.
,◉ Capital Budget . Answer: Long range planning tool for organizations;
also refers to items that cost over a certain amount of money $500,
$1000, $5000
◉ Capitation . Answer: Payment arrangement where providers are paid
a pre-arranged amount for each person/member asssigned to them over a
certain period of time often whether they use it or not.
◉ Charitable Care . Answer: Healthcare provided for free or at reduced
prices to low income patients
◉ CMI . Answer: Case Mix Index (CMI) is the average relative DRG
weight of a hospital's inpatient discharges, calculated by summing the
Medicare Severity-Diagnosis Related Group (MS-DRG) weight for each
discharge and dividing the total by the number of discharges.
◉ What does CMI reflect? . Answer: Reflects the diversity, clinical
complexity and resource needs of all the patients in the hospital.
◉ What does a higher CMI indicate? . Answer: Indicates a more
complex and resource-intensive case load.
◉ Contribution Margin . Answer: The profit that is contributed by a cost
center without the indirect costs.
, ◉ Cost-Benefit Ratio . Answer: A way for an organization or
department to weigh/analyze the cost of an item/project/program with
the benefit. Analysis may include non-monetary value such as charity
care and community benefit.
◉ Depreciation . Answer: Amount written off annually on a piece of
equipment and buildings.
◉ Direct Costs . Answer: Costs that can be attributed to a specific item
or cost in a department's or projects budget. Examples include salaries,
admission kits etc.
◉ DRG (Diagnosis Related Groups) . Answer: Categories of diagnoses
defined by Medicare for payment purposes
◉ Fiscal year . Answer: The period of time or cycle that a 12-month
budget addresses. Most common cycles include calendar year January
1st-Dec 31st or academic year Sept 1-Aug 31st
◉ Fixed Expenses . Answer: Remains the same regardless of the
number of patients such as mortgage or loan payments
◉ Forecasting . Answer: The process by which a department or
organization translates future needs of a new program or budget into
resource needs and financial terms.
