(LU) BUSI 323 Financial Analysis & Management - Latest Finals Review Q & S 2024.

BUSI 323




Financial Analysis & Management




LATEST FINALS REVIEW
Q&S




©2024/2025

,1. Which financial statement offers a snapshot of the healthcare
organization's financial position at a specific point in time?


A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Statement of Changes in Equity


Answer: B) Balance Sheet
Rationale: The balance sheet provides a snapshot of the
organization's assets, liabilities, and equity at a specific point in
time.


2. What is the primary goal of cost-volume-profit (CVP) analysis
in a healthcare setting?


A) Determine patient satisfaction levels
B) Analyze the impact of financial risk
C) Assess profitability at different levels of activity
D) Predict cash flow trends


Answer: C) Assess profitability at different levels of activity
©2024/2025

, Rationale: CVP analysis helps in understanding how changes in
costs and volume affect a company's operating income and net
income.


3. Which of the following is NOT a component of working
capital management in healthcare?


A) Inventory management
B) Capital budgeting
C) Accounts receivable management
D) Cash management


Answer: B) Capital budgeting
Rationale: Working capital management focuses on short-term
assets and liabilities, while capital budgeting is related to long-
term investment decisions.


4. What type of ratio is used to evaluate a healthcare
organization's ability to pay its long-term obligations?


A) Solvency ratio
B) Liquidity ratio

©2024/2025