Healthcare Finance Final Exam
Profitability ratios include: - correct answer ✔✔- Operating Margins
- Return of Total Assets
Return on total assets may be computed as: - correct answer ✔✔Earnings before interest and taxes
divided by total assets
The Liabilities to Fund Balance ratio is: - correct answer ✔✔- Quick indicator total debt load
- Debt to Net-worth ratio
Total liabilities/unrestricted fund balance
Profitability ratios include - correct answer ✔✔Operating Margins
Return of Total Assets
Return on total assets may be computed as: - correct answer ✔✔Earnings before interest and taxes
divided by total assets
The Liabilities to Fund Balance ratio is: - correct answer ✔✔Quick indicator total debt load
Debt to Net-worth ratio
Solvency ratios: - correct answer ✔✔will of organization
annual obligation to long term debt
Ability of origination to pay annual obligations on a long-term debt, org. ability to have enough resources
of money to meet long term obligations.
, Evaluating the use of money is possible through computation of: - correct answer ✔✔1. Unadjusted rate
of return
2. Present value analysis
3. Internal rate of return
4. Payback period
Average annual net income divided by original investment amount equals: - correct answer ✔✔Equals
rate of return.
A payback period is the length of time required for the cash coming in from an investment to equal the: -
correct answer ✔✔The amount of cash spent when the investment was required—the amount of cash
originally spent
The payback period concept is used extensively in evaluating whether to invest in: - correct answer
✔✔Equipment plan MRI machines
The concept of present-value analysis is based on the fact that: - correct answer ✔✔On the time value of
the money
Value of the dollar today, is more than the value past
9-B
10-B
13- A - correct answer ✔✔
Common sizing: - correct answer ✔✔Common sizing puts data/info on the same relative basis.
Forecast assumptions can be determined by: - correct answer ✔✔1.Trend Analysis
2.Utilization changes
3.Payer Changes
Profitability ratios include: - correct answer ✔✔- Operating Margins
- Return of Total Assets
Return on total assets may be computed as: - correct answer ✔✔Earnings before interest and taxes
divided by total assets
The Liabilities to Fund Balance ratio is: - correct answer ✔✔- Quick indicator total debt load
- Debt to Net-worth ratio
Total liabilities/unrestricted fund balance
Profitability ratios include - correct answer ✔✔Operating Margins
Return of Total Assets
Return on total assets may be computed as: - correct answer ✔✔Earnings before interest and taxes
divided by total assets
The Liabilities to Fund Balance ratio is: - correct answer ✔✔Quick indicator total debt load
Debt to Net-worth ratio
Solvency ratios: - correct answer ✔✔will of organization
annual obligation to long term debt
Ability of origination to pay annual obligations on a long-term debt, org. ability to have enough resources
of money to meet long term obligations.
, Evaluating the use of money is possible through computation of: - correct answer ✔✔1. Unadjusted rate
of return
2. Present value analysis
3. Internal rate of return
4. Payback period
Average annual net income divided by original investment amount equals: - correct answer ✔✔Equals
rate of return.
A payback period is the length of time required for the cash coming in from an investment to equal the: -
correct answer ✔✔The amount of cash spent when the investment was required—the amount of cash
originally spent
The payback period concept is used extensively in evaluating whether to invest in: - correct answer
✔✔Equipment plan MRI machines
The concept of present-value analysis is based on the fact that: - correct answer ✔✔On the time value of
the money
Value of the dollar today, is more than the value past
9-B
10-B
13- A - correct answer ✔✔
Common sizing: - correct answer ✔✔Common sizing puts data/info on the same relative basis.
Forecast assumptions can be determined by: - correct answer ✔✔1.Trend Analysis
2.Utilization changes
3.Payer Changes
