LSUS MHA 706 Midterm Questions with CORRECT Answers (Grade A+)

LSUS MHA 706 Midterm Questions with CORRECT
Answers (Grade A+)

Question 1:
The major provisions of the Patient Protection & Affordable Care Act of 2010 were?
Answer:
-Banning of preexisting condition coverage limitations -Free preventative care -Medicaid expansion

Question 2:
Which of the following statement(s) about the finance department a t large healthcare organizations
is/are correct?
Answer:
-The CFO typically reports directly to the chief executive officer (CEO) -The CFO is usually assisted
by a comptroller and treasurer -The department is headed by the chief financial officer (CFO)
(sometimes called the vice president-finance)

Question 3:
In a not-for-profit hospital, the following are example(s) of a stakeholder.
Answer:
-Vendor -Employee -Community

Question 4:
Stockholders have all of the following right(s)... -Claim on residual liquidation pro-
Answer:
ceeds -Right of control -A possible dividend and/or capital gains

Question 5:
Which of the following statements about finance accounting, and financial management is most
correct?
Answer:
Financial management provides the theory, concepts, and tools necessary to help managers make better
financial decisions.

,Question 6:
External reporting
Answer:
What is a DISADVANTAGE of being a corporation?

Question 7:
Facilities management
Answer:
Which of the following are not finance activities?

Question 8:
What is NOT a advantage of proprietorship?
Answer:
Unlimited liability

Question 9:
A not-for-profit corporation can also be called a 529(b).
Answer:
False

Question 10:
The primary goal of investor-owned corporations is shareholder wealth maximization.
Answer:
True

Question 11:
Copayments
Answer:
The fixed amount for a covered service that the insurer mandates that the patient pay to the provider
before the patient receives service from the provider.

Question 12:
Coinsurance
Answer:
Requires an individual to pay for a certain percentage of the eligible medical expenses.

, Question 13:
Adverse selection
Answer:
Individuals at greater risk of needing health care are more likely to purchase insurance.

Question 14:
Deductibles
Answer:
The amount that must be paid out of pocket by the policyholder before an insurance provider will pay
any expenses.

Question 15:
Moral hazard
Answer:
The risk of overuse of health services because the insured does not bear the full cost of the
consequences.

Question 16:
Medicare Part B
Answer:
Covers physician services, ambulatory surgical services, outpatient services, and certain other
miscellaneous services.

Question 17:
Medicare Part A
Answer:
Covers hospital and some skilled nursing coverage

Question 18:
Medicare Part D
Answer:
Covers prescription drugs