HEALTHCARE FINANCE EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Healthcare finance focuses on:
A. Managing financial resources in healthcare organizations
B. Performing surgery
C. Diagnosing diseases
D. Building hospitals
Answer: A
Rationale: It deals with financial management in healthcare.
2. Revenue cycle in healthcare begins with:
A. Patient registration
B. Payment posting
C. Claim denial
D. Coding submission
Answer: A
Rationale: First step is patient intake.
3. The revenue cycle ends with:
A. Payment collection
B. Diagnosis
C. Surgery
D. Coding
Answer: A
Rationale: Final step is payment.
4. Accounts receivable refers to:
A. Money owed to healthcare provider
B. Money paid
C. Hospital expenses
,D. Insurance denial
Answer: A
Rationale: Outstanding payments.
5. Accounts payable refers to:
A. Money owed by organization
B. Money received
C. Patient billing
D. Insurance claims
Answer: A
Rationale: Liabilities of organization.
6. A budget in healthcare is used to:
A. Plan financial resources
B. Diagnose patients
C. Perform surgery
D. Code diseases
Answer: A
Rationale: Financial planning tool.
7. Operating budget includes:
A. Day-to-day expenses
B. Long-term investments
C. Surgery costs only
D. Insurance claims
Answer: A
Rationale: Routine expenses.
8. Capital budget covers:
A. Long-term investments like equipment
B. Salaries only
C. Patient billing
, D. Insurance claims
Answer: A
Rationale: Major assets.
9. Cost containment means:
A. Reducing unnecessary expenses
B. Increasing spending
C. Ignoring budgets
D. Increasing losses
Answer: A
Rationale: Financial efficiency.
10. Fixed cost is:
A. Cost that does not change with activity
B. Variable cost
C. Patient cost
D. Insurance payment
Answer: A
Rationale: Constant expense.
11. Variable cost changes with:
A. Level of activity
B. Fixed budgets
C. Salaries only
D. Insurance rules
Answer: A
Rationale: Depends on usage.
12. Break-even point is when:
A. Revenue equals cost
B. Profit increases
C. Loss occurs
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Healthcare finance focuses on:
A. Managing financial resources in healthcare organizations
B. Performing surgery
C. Diagnosing diseases
D. Building hospitals
Answer: A
Rationale: It deals with financial management in healthcare.
2. Revenue cycle in healthcare begins with:
A. Patient registration
B. Payment posting
C. Claim denial
D. Coding submission
Answer: A
Rationale: First step is patient intake.
3. The revenue cycle ends with:
A. Payment collection
B. Diagnosis
C. Surgery
D. Coding
Answer: A
Rationale: Final step is payment.
4. Accounts receivable refers to:
A. Money owed to healthcare provider
B. Money paid
C. Hospital expenses
,D. Insurance denial
Answer: A
Rationale: Outstanding payments.
5. Accounts payable refers to:
A. Money owed by organization
B. Money received
C. Patient billing
D. Insurance claims
Answer: A
Rationale: Liabilities of organization.
6. A budget in healthcare is used to:
A. Plan financial resources
B. Diagnose patients
C. Perform surgery
D. Code diseases
Answer: A
Rationale: Financial planning tool.
7. Operating budget includes:
A. Day-to-day expenses
B. Long-term investments
C. Surgery costs only
D. Insurance claims
Answer: A
Rationale: Routine expenses.
8. Capital budget covers:
A. Long-term investments like equipment
B. Salaries only
C. Patient billing
, D. Insurance claims
Answer: A
Rationale: Major assets.
9. Cost containment means:
A. Reducing unnecessary expenses
B. Increasing spending
C. Ignoring budgets
D. Increasing losses
Answer: A
Rationale: Financial efficiency.
10. Fixed cost is:
A. Cost that does not change with activity
B. Variable cost
C. Patient cost
D. Insurance payment
Answer: A
Rationale: Constant expense.
11. Variable cost changes with:
A. Level of activity
B. Fixed budgets
C. Salaries only
D. Insurance rules
Answer: A
Rationale: Depends on usage.
12. Break-even point is when:
A. Revenue equals cost
B. Profit increases
C. Loss occurs
