healthcare finance exam 1
Which of the following statements about finance, accounting, and financial management is most
correct? - correct answer ✔✔The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following is not a finance activity? - correct answer ✔✔Facilities management
Which of the following statements about the finance department of large healthcare organizations
is(are) most correct? - correct answer ✔✔a. The department is headed by the chief financial officer
(CFO) (sometimes called the vice president-finance).
b. The CFO typically reports directly to the chief executive officer. c. The CFO usually is assisted by a
comptroller and a treasurer.
d. The comptroller and treasurer often have managers under them responsible for specific functions,
such as patient accounts management and cash management.
ALL ARE CORRECT
Which of the following statements about hospitals is most correct? - correct answer ✔✔The majority of
hospitals are public or not for profit (as opposed to investor owned).
Which of the following statements about healthcare providers is incorrect? - correct answer ✔✔There
are many more hospitals than there are nursing homes, but nursing homes tend to have a greater
number of beds.
In the United States, the highest proportion of healthcare expenditures is for - correct answer
✔✔hospital care
Which of the following statements about regulatory and legal issues is most correct? - correct answer
✔✔Most providers' primary legal concern is professional liability.
, Recent surveys of members of the American College of Healthcare Executives and Healthcare Financial
Management Association indicate several critical concerns and challenges. Which of the following
concerns did they identify? - correct answer ✔✔a. Adequate reimbursement from government payers
b. Balancing clinical and financial issues
The four Cs (character, capability, charisma, and courtesy) as described in the textbook summarize the
attributes needed to be a good financial manager. - correct answer ✔✔false
The role of finance in healthcare organizations has increased in importance over time because the
finance function must support a multitude of activities, such as cost containment, payer negotiations,
and joint venture activities. - correct answer ✔✔true
Many studies have demonstrated that integrated delivery systems are able to provide higher-quality care
at lower cost than can stand-alone specialized provider organizations. - correct answer ✔✔false
Which of the following activities (is)are characteristic of businesses? - correct answer ✔✔a. Raising
money in the capital markets
b. Using money raised to purchase assets, such as land, buildings, and equipment
c. Using the purchased assets to create goods or services
d. Sustaining themselves financially by selling their goods or services
ALL ARE CORRECT
Which of the following statements about the legal forms of for-profit business organization is most
correct? - correct answer ✔✔Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect? - correct
answer ✔✔When an individual sells his stock, the company receives the proceeds from the sale.
Which of the following statements about not-for-profit corporations is most correct? - correct answer
✔✔They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? - correct answer
✔✔stockholders
Which of the following statements about finance, accounting, and financial management is most
correct? - correct answer ✔✔The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following is not a finance activity? - correct answer ✔✔Facilities management
Which of the following statements about the finance department of large healthcare organizations
is(are) most correct? - correct answer ✔✔a. The department is headed by the chief financial officer
(CFO) (sometimes called the vice president-finance).
b. The CFO typically reports directly to the chief executive officer. c. The CFO usually is assisted by a
comptroller and a treasurer.
d. The comptroller and treasurer often have managers under them responsible for specific functions,
such as patient accounts management and cash management.
ALL ARE CORRECT
Which of the following statements about hospitals is most correct? - correct answer ✔✔The majority of
hospitals are public or not for profit (as opposed to investor owned).
Which of the following statements about healthcare providers is incorrect? - correct answer ✔✔There
are many more hospitals than there are nursing homes, but nursing homes tend to have a greater
number of beds.
In the United States, the highest proportion of healthcare expenditures is for - correct answer
✔✔hospital care
Which of the following statements about regulatory and legal issues is most correct? - correct answer
✔✔Most providers' primary legal concern is professional liability.
, Recent surveys of members of the American College of Healthcare Executives and Healthcare Financial
Management Association indicate several critical concerns and challenges. Which of the following
concerns did they identify? - correct answer ✔✔a. Adequate reimbursement from government payers
b. Balancing clinical and financial issues
The four Cs (character, capability, charisma, and courtesy) as described in the textbook summarize the
attributes needed to be a good financial manager. - correct answer ✔✔false
The role of finance in healthcare organizations has increased in importance over time because the
finance function must support a multitude of activities, such as cost containment, payer negotiations,
and joint venture activities. - correct answer ✔✔true
Many studies have demonstrated that integrated delivery systems are able to provide higher-quality care
at lower cost than can stand-alone specialized provider organizations. - correct answer ✔✔false
Which of the following activities (is)are characteristic of businesses? - correct answer ✔✔a. Raising
money in the capital markets
b. Using money raised to purchase assets, such as land, buildings, and equipment
c. Using the purchased assets to create goods or services
d. Sustaining themselves financially by selling their goods or services
ALL ARE CORRECT
Which of the following statements about the legal forms of for-profit business organization is most
correct? - correct answer ✔✔Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect? - correct
answer ✔✔When an individual sells his stock, the company receives the proceeds from the sale.
Which of the following statements about not-for-profit corporations is most correct? - correct answer
✔✔They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? - correct answer
✔✔stockholders
