FINANCIAL RESOURCE MANAGEMENT IN HEALTHCARE (C428) QUESTIONS WITH CORRECT ANSWERS

Accounting Correct Answer The measure and recording of events that reflect the operations, assets, expenses, and other financing of an organization. Breakeven Analysis Correct Answer Determines the point when the investment in the project will generate a positive return. Business Manager or SBU Manager Correct Answer The manager responsible for the finance function in a small healthcare organization, such as a medical practice with one or a few clinicians. Call Provision Correct Answer Gives the issuer the right to redeem the bonds before maturity under specified terms. A business will call a bond issue and refund it if interest rates fall sufficiently after the bond has been issued. Capital Investment Analysis Correct Answer Involves analyzing potential expenditures on land, buildings, and equipment and deciding whether or not the organization should undertake those investments. 4 Steps: 1. Estimate the expected cash flows. 2. Assess the riskiness of those flow. 3. Estimate the appropriate opportunity cost of capital. 4. Determine the project's profitability and breakeven characteristics. Capital Structure Correct Answer The business's mix of debt and equity financing, often expressed as the percentage of debt financing. Compounding Correct Answer The process of determining the future value of a current cash flow or series of flows. Comptroller Correct Answer Someone who is responsible for accounting and reporting activities. The ________ directly manages specific functions, such as patient accounts manager. Cost of Debt Correct Answer The interest that is paid in addition to the principal that is borrowed. Debt Contract Correct Answer A legal document that spells out the rights and obligations of both lenders and borrows.