MHA 706

MODULE 5- MHA 706 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS Cost of capital interest rate on debt security and influenced by interest rates. Factors that influence the general level of interest rates -investment opportunities -time preferences for consumption -risk -inflation expectations Investment opportunities and interest rates the more profitable options the higher the interest rate. Time preference on interest rates people will prefer short term consumption vs. long te...

MHA 706 FINAL 2 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED cost allocation assign all overhead costs to the departments that create the need for such costs, typically the patient services department cost pool Overhead amount to be allocated. Consists of the direct costs of one overhead department cost driver The basis on which a cost pool is allocated; for example, square footage for facilities costs. Direct Method Cost allocation method in which the costs of each suppo...

MHA 706: MODULE 2 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Financial obligations Liabilities represent claims against an organization's assets that are fixed by contract. In other words, liabilities are considered. Going Concern: GAAP Assumption Expense Matching: GAAP Principle Materiality: GAAP Constraint Generally Accepted Accounting Principles (GAAP) are said to be compromised of assumptions, principles and constraints. Match the term to its appropriate category. ...

MHA 706 MODULE 3 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Ratio Analysis technique used in financial condition analysis Financial ratio analysis combines values from the financial statements to create single numbers that facilitate comparisons Profitability ratio answers the question- is the business generating sufficient profits Liquidity ratio can the business meet its cash obligations or debts Debt management ratio answers whether the business is using the right m...

HEALTHCARE FINANCE MHA 706 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Individuals at greater risk of needing health care are more likely to purchase insurance Adverse selection Healthcare Finance the practice of finance, including both accounting AND financial management Accounting the measurement, in financial (dollar) terms of events that reflect the resources, operations, and financing of an organization Financial Management provides the theory, concepts, an tools nec...

MHA 706 MIDTERM EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Alternative forms of business organization 1. proprietorships and partnerships 2. corporations 3. hybrid forms proprietorships and partnerships pros: ease of information, subject to a few regulations, no corporation income taxes. cons: limited life, difficult to transfer, unlimited liability, difficult to raise capital. corporations pros: unlimited life, easy transfer of ownership, limited liability, ease of r...

MHA 706 FINAL EXAM QUESTIONS WITH COMPETE SOLUTIONS VERIFIED Direct Costs Costs unique and exclusive to a department. GENERATE REVENUE Ex- costs associated with providing the clinical testing such as staff and supplies. Indirect costs (overheads) Costs associated with shared resources used by the entire organization Ex-costs associated with central services such as human resources and finance Cost Allocation Assign all overhead costs to the departments that create the need for such...

MHA 706 Midterm- Lord With Best Solutions Proprietorships & Partnerships: Pros & Cons -Correct Answer-Pros: Ease of Information, Subject to a few regulations, no corporation income taxes. Cons: Limited life, difficult to transfer, unlimited life, difficult to raise capital. Corporations: Pros & Cons -Correct Answer-Pros: Unlimited life, easy transfer of ownership, limited liability, ease of raising capital. Cons: Cost of formation and reporting, double or triple taxes must be paid. Non-...