MHA 706 Financial Management Midterm Exam Questions & Answers Tes
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
1. healthcare fi- the accounting and financial management principles and practices used within
nance health services organizations to ensure the financial well-being of the enterprise
2. healthcare sector consists of a diverse collection of industries that involve the healthcare of the
population
3. provider an organization that provides healthcare services
4. business maintains financial viability by selling goods or services
5. pure charity relies solely on contributions
6. finance consists of both accounting and financial management functions
7. primary role of fi- to plan for, acquire, and use resources to maximize the efficiency and value of the
nance enterprise
8. accounting concerns the recording of economic events that reflect the operations, resources,
and financing of an organization
9. financial man- provides the theory, concepts, and tools necessary to help managers make better
agement financial decisions
10. planning and involves evaluating the financial effectiveness of current operations and planning
budgeting for the future
11. financial report- recording and reporting to outsiders the results of operations and current finan-
ing cial status
12. capital budget- the process of analyzing and choosing new fixed assets
ing
13.
, MHA 706 Financial Management Midterm Exam Questions & Answers Tes
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
financing deci- all organizations must raise capital to buy the assets necessary to support opera-
sions tions
14. working capital a managerial accounting strategy focusing on maintaining efficient levels of both
management components of working capital, current assets and current liabilities, in respect to
each other
15. contract man- the process of managing contract creation, execution and analysis to maximize
agement operational and financial performance at an organization, all while reducing
financial risk
16. financial risk the practice of economic value in a firm by using financial instruments to manage
management exposure to risk, particularly credit risk and market risk
17. four C's costs, cash, capital, and control
18. cost a resource use associated with providing or supporting a specific service
19. chief financial of- typically reports directly to the CEO
ficer
20. chief executive of- responsible for all finance activities within the organization
ficer
21. comptroller responsible for accounting and reporting activities
22. treasurer responsible for then acquisition and management of capital
23. patient accounts reports to the comptroller
manager
24. cash manager reports to treasurer
, MHA 706 Financial Management Midterm Exam Questions & Answers Tes
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
25. business practice in small health services organizations, the finance responsibilities are combined
manager and assigned to this person
26. hospitals provide diagnostic and therapeutic services to individuals who require more that
several hours of care
27. general acute provide general medical and surgical services and selected acute specialty ser-
care hospitals vices
28. tertiary care highly specialized and technical in nature, with services for patients with unusually
severe, complex, or uncommon problems
29. governmental federal and public entities
hospitals
30. federal hospitals operated by military services or the US Department of Veterans Affairs
31. public hospitals funded wholly or in part by a city, county, tax district, or state
32. private nongovernmental entities organized for the sole purpose of providing inpatient
not-for-profit healthcare services
hospitals
33. investor-owned a for-profit business whose capital is supplied by owners
corporations
34. not-for-profit a corporation that has a charitable purpose, is tax exempt, and has no owners
corporations
35. third-party payer an entity other that the patient that pays for healthcare services
36. ambulatory or encompasses services provided to non institutionalized patients
outpatient care
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
1. healthcare fi- the accounting and financial management principles and practices used within
nance health services organizations to ensure the financial well-being of the enterprise
2. healthcare sector consists of a diverse collection of industries that involve the healthcare of the
population
3. provider an organization that provides healthcare services
4. business maintains financial viability by selling goods or services
5. pure charity relies solely on contributions
6. finance consists of both accounting and financial management functions
7. primary role of fi- to plan for, acquire, and use resources to maximize the efficiency and value of the
nance enterprise
8. accounting concerns the recording of economic events that reflect the operations, resources,
and financing of an organization
9. financial man- provides the theory, concepts, and tools necessary to help managers make better
agement financial decisions
10. planning and involves evaluating the financial effectiveness of current operations and planning
budgeting for the future
11. financial report- recording and reporting to outsiders the results of operations and current finan-
ing cial status
12. capital budget- the process of analyzing and choosing new fixed assets
ing
13.
, MHA 706 Financial Management Midterm Exam Questions & Answers Tes
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
financing deci- all organizations must raise capital to buy the assets necessary to support opera-
sions tions
14. working capital a managerial accounting strategy focusing on maintaining efficient levels of both
management components of working capital, current assets and current liabilities, in respect to
each other
15. contract man- the process of managing contract creation, execution and analysis to maximize
agement operational and financial performance at an organization, all while reducing
financial risk
16. financial risk the practice of economic value in a firm by using financial instruments to manage
management exposure to risk, particularly credit risk and market risk
17. four C's costs, cash, capital, and control
18. cost a resource use associated with providing or supporting a specific service
19. chief financial of- typically reports directly to the CEO
ficer
20. chief executive of- responsible for all finance activities within the organization
ficer
21. comptroller responsible for accounting and reporting activities
22. treasurer responsible for then acquisition and management of capital
23. patient accounts reports to the comptroller
manager
24. cash manager reports to treasurer
, MHA 706 Financial Management Midterm Exam Questions & Answers Tes
QUESTIONS AND VERIFIED SOLUTIONS |2026| ELABORATED &DETAILED
ANSWERS!!
25. business practice in small health services organizations, the finance responsibilities are combined
manager and assigned to this person
26. hospitals provide diagnostic and therapeutic services to individuals who require more that
several hours of care
27. general acute provide general medical and surgical services and selected acute specialty ser-
care hospitals vices
28. tertiary care highly specialized and technical in nature, with services for patients with unusually
severe, complex, or uncommon problems
29. governmental federal and public entities
hospitals
30. federal hospitals operated by military services or the US Department of Veterans Affairs
31. public hospitals funded wholly or in part by a city, county, tax district, or state
32. private nongovernmental entities organized for the sole purpose of providing inpatient
not-for-profit healthcare services
hospitals
33. investor-owned a for-profit business whose capital is supplied by owners
corporations
34. not-for-profit a corporation that has a charitable purpose, is tax exempt, and has no owners
corporations
35. third-party payer an entity other that the patient that pays for healthcare services
36. ambulatory or encompasses services provided to non institutionalized patients
outpatient care
