LSUS MHA 705 Module 1 Questions
And Correct Verified Answers, 100%
Guaranteed
Which financial statement reports an organization's revenues and expenses over a specific
period?
A. Balance sheet
B. Income statement
C. Statement of cash flows
D. Statement of changes in equity
Answer: B. Income statement
Rationale: The income statement summarizes revenues, expenses, and resulting profit or loss
over a defined period.
Which financial statement shows an organization's assets, liabilities, and equity at a specific
point in time?
A. Income statement
B. Cash-flow statement
C. Balance sheet
D. Operating budget
Answer: C. Balance sheet
Rationale: A balance sheet presents the organization's financial position at a particular date.
What is the primary purpose of a healthcare organization's operating budget?
A. To eliminate all expenses
B. To plan expected revenues and expenses
C. To determine employee licensure
D. To establish clinical diagnoses
Answer: B. To plan expected revenues and expenses
Rationale: An operating budget estimates revenues and routine operating expenses for a
specified period.
,Which is an example of a fixed cost in a healthcare organization?
A. Medical supplies used per patient
B. Laboratory reagents
C. Building rent
D. Patient meals
Answer: C. Building rent
Rationale: Fixed costs generally remain relatively stable regardless of short-term changes in
patient volume.
Which is an example of a variable cost?
A. Building lease
B. Property insurance
C. Medical supplies
D. Executive salary
Answer: C. Medical supplies
Rationale: Variable costs generally change as the volume of services or patients changes.
What does ROI stand for?
A. Rate of Insurance
B. Return on Investment
C. Revenue of Insurance
D. Ratio of Income
Answer: B. Return on Investment
Rationale: ROI measures the financial return generated relative to an investment.
Which management function involves establishing organizational objectives and determining
how to achieve them?
A. Controlling
B. Staffing
C. Planning
D. Directing
Answer: C. Planning
Rationale: Planning involves setting objectives and determining strategies and actions for
achieving them.
Which management function involves comparing actual performance with established
standards?
, A. Controlling
B. Organizing
C. Staffing
D. Planning
Answer: A. Controlling
Rationale: Controlling monitors performance and compares results with established goals or
standards.
What is the primary purpose of strategic planning?
A. To manage daily patient appointments
B. To establish long-term organizational direction
C. To calculate individual employee salaries
D. To replace financial accounting
Answer: B. To establish long-term organizational direction
Rationale: Strategic planning establishes long-term goals and priorities and guides
organizational direction.
Which tool identifies strengths, weaknesses, opportunities, and threats?
A. PERT
B. SWOT analysis
C. Gantt chart
D. Fishbone diagram
Answer: B. SWOT analysis
Rationale: SWOT analysis evaluates internal strengths and weaknesses and external
opportunities and threats.
Which organizational structure groups employees according to specialized functions?
A. Functional structure
B. Matrix structure
C. Network structure
D. Project structure
Answer: A. Functional structure
Rationale: A functional structure groups personnel according to areas such as finance, nursing,
marketing, or human resources.
What is delegation?
And Correct Verified Answers, 100%
Guaranteed
Which financial statement reports an organization's revenues and expenses over a specific
period?
A. Balance sheet
B. Income statement
C. Statement of cash flows
D. Statement of changes in equity
Answer: B. Income statement
Rationale: The income statement summarizes revenues, expenses, and resulting profit or loss
over a defined period.
Which financial statement shows an organization's assets, liabilities, and equity at a specific
point in time?
A. Income statement
B. Cash-flow statement
C. Balance sheet
D. Operating budget
Answer: C. Balance sheet
Rationale: A balance sheet presents the organization's financial position at a particular date.
What is the primary purpose of a healthcare organization's operating budget?
A. To eliminate all expenses
B. To plan expected revenues and expenses
C. To determine employee licensure
D. To establish clinical diagnoses
Answer: B. To plan expected revenues and expenses
Rationale: An operating budget estimates revenues and routine operating expenses for a
specified period.
,Which is an example of a fixed cost in a healthcare organization?
A. Medical supplies used per patient
B. Laboratory reagents
C. Building rent
D. Patient meals
Answer: C. Building rent
Rationale: Fixed costs generally remain relatively stable regardless of short-term changes in
patient volume.
Which is an example of a variable cost?
A. Building lease
B. Property insurance
C. Medical supplies
D. Executive salary
Answer: C. Medical supplies
Rationale: Variable costs generally change as the volume of services or patients changes.
What does ROI stand for?
A. Rate of Insurance
B. Return on Investment
C. Revenue of Insurance
D. Ratio of Income
Answer: B. Return on Investment
Rationale: ROI measures the financial return generated relative to an investment.
Which management function involves establishing organizational objectives and determining
how to achieve them?
A. Controlling
B. Staffing
C. Planning
D. Directing
Answer: C. Planning
Rationale: Planning involves setting objectives and determining strategies and actions for
achieving them.
Which management function involves comparing actual performance with established
standards?
, A. Controlling
B. Organizing
C. Staffing
D. Planning
Answer: A. Controlling
Rationale: Controlling monitors performance and compares results with established goals or
standards.
What is the primary purpose of strategic planning?
A. To manage daily patient appointments
B. To establish long-term organizational direction
C. To calculate individual employee salaries
D. To replace financial accounting
Answer: B. To establish long-term organizational direction
Rationale: Strategic planning establishes long-term goals and priorities and guides
organizational direction.
Which tool identifies strengths, weaknesses, opportunities, and threats?
A. PERT
B. SWOT analysis
C. Gantt chart
D. Fishbone diagram
Answer: B. SWOT analysis
Rationale: SWOT analysis evaluates internal strengths and weaknesses and external
opportunities and threats.
Which organizational structure groups employees according to specialized functions?
A. Functional structure
B. Matrix structure
C. Network structure
D. Project structure
Answer: A. Functional structure
Rationale: A functional structure groups personnel according to areas such as finance, nursing,
marketing, or human resources.
What is delegation?
