MHA 706 Financial Management 110
High-Yield Questions & Answers for
Nursing, Health Administration &
Healthcare Managemen Midterm
HEALTHCARE FINANCE MASTER REVISION NOTES & EXAM Q&A GUIDE
HIGH-YIELD HEALTHCARE FINANCE EXAM REVISION MATERIAL
1. healthcare finance
CORRECT ANSWER: The accounting and financial management principles and practices used
within health services organizations to ensure the financial well-being of the enterprise.
2. healthcare sector
CORRECT ANSWER: Consists of a diverse collection of industries that involve the healthcare
of the population.
3. provider
CORRECT ANSWER: An organization that provides healthcare services.
4. business
CORRECT ANSWER: Maintains financial viability by selling goods or services.
5. pure charity
CORRECT ANSWER: Relies solely on contributions.
6. finance
CORRECT ANSWER: Consists of both accounting and financial management functions.
7. primary role of finance
CORRECT ANSWER: To plan for, acquire, and use resources to maximize the efficiency and
value of the enterprise.
8. accounting
, CORRECT ANSWER: Concerns the recording of economic events that reflect the operations,
resources, and financing of an organization.
9. financial management
CORRECT ANSWER: Provides the theory, concepts, and tools necessary to help managers
make better financial decisions.
10. planning and budgeting
CORRECT ANSWER: Involves evaluating the financial effectiveness of current operations and
planning for the future.
11. financial reporting
CORRECT ANSWER: Recording and reporting to outsiders the results of operations and
current financial status.
12. capital budgeting
CORRECT ANSWER: The process of analyzing and choosing new fixed assets.
13. financing decisions
CORRECT ANSWER: All organizations must raise capital to buy the assets necessary to
support operations.
14. working capital management
CORRECT ANSWER: A managerial accounting strategy focusing on maintaining efficient
levels of both components of working capital, current assets and current liabilities, in respect to
each other.
15. contract management
CORRECT ANSWER: The process of managing contract creation, execution and analysis to
maximize operational and financial performance while reducing financial risk.
16. financial risk management
CORRECT ANSWER: The practice of preserving economic value in a firm by using financial
instruments to manage exposure to risk, particularly credit risk and market risk.
17. four C's
CORRECT ANSWER: Costs, Cash, Capital, and Control.
High-Yield Questions & Answers for
Nursing, Health Administration &
Healthcare Managemen Midterm
HEALTHCARE FINANCE MASTER REVISION NOTES & EXAM Q&A GUIDE
HIGH-YIELD HEALTHCARE FINANCE EXAM REVISION MATERIAL
1. healthcare finance
CORRECT ANSWER: The accounting and financial management principles and practices used
within health services organizations to ensure the financial well-being of the enterprise.
2. healthcare sector
CORRECT ANSWER: Consists of a diverse collection of industries that involve the healthcare
of the population.
3. provider
CORRECT ANSWER: An organization that provides healthcare services.
4. business
CORRECT ANSWER: Maintains financial viability by selling goods or services.
5. pure charity
CORRECT ANSWER: Relies solely on contributions.
6. finance
CORRECT ANSWER: Consists of both accounting and financial management functions.
7. primary role of finance
CORRECT ANSWER: To plan for, acquire, and use resources to maximize the efficiency and
value of the enterprise.
8. accounting
, CORRECT ANSWER: Concerns the recording of economic events that reflect the operations,
resources, and financing of an organization.
9. financial management
CORRECT ANSWER: Provides the theory, concepts, and tools necessary to help managers
make better financial decisions.
10. planning and budgeting
CORRECT ANSWER: Involves evaluating the financial effectiveness of current operations and
planning for the future.
11. financial reporting
CORRECT ANSWER: Recording and reporting to outsiders the results of operations and
current financial status.
12. capital budgeting
CORRECT ANSWER: The process of analyzing and choosing new fixed assets.
13. financing decisions
CORRECT ANSWER: All organizations must raise capital to buy the assets necessary to
support operations.
14. working capital management
CORRECT ANSWER: A managerial accounting strategy focusing on maintaining efficient
levels of both components of working capital, current assets and current liabilities, in respect to
each other.
15. contract management
CORRECT ANSWER: The process of managing contract creation, execution and analysis to
maximize operational and financial performance while reducing financial risk.
16. financial risk management
CORRECT ANSWER: The practice of preserving economic value in a firm by using financial
instruments to manage exposure to risk, particularly credit risk and market risk.
17. four C's
CORRECT ANSWER: Costs, Cash, Capital, and Control.
