CPPM Chapter 4 Already Graded A+

CPPM Chapter 4 Already Graded A+ Financial Management What system uses the cost of equipment, staff time, and supplies to evaluate overall cost? Options: a. Activity-based costing; b. Cost-benefit analysis; c. Break-even analysis; d. Cash-based accounting Answer: a. Activity-based costing What is an advantage of leasing medical equipment? Options: a. Lease payments are not deductible for income tax purposes; b. Lease payments are deductible for income tax purposes; c. Lease payments are non-deductible for both income and sales tax; d. Lease payments are deductible for both income and sales tax Answer: b. Lease payments are deductible for income tax purposes Financial Planning What are two disadvantages of owning medical equipment? Options: a. Large upfront cost, devaluation over time, high maintenance costs; b. Large upfront cost, devaluation over time, low maintenance costs; c. Large upfront cost, high maintenance costs, devaluation over time; d. Low upfront cost, devaluation over time, low maintenance costs Answer: c. Large upfront cost, high maintenance costs, devaluation over time Financial Statements What financial statement is used to maintain awareness of the funds available to support ongoing business operations in your practice? Options: a. Balance sheet; b. Income statement; c. Cash flow statement; d. Budget Answer: c. Cash flow statement Accounting Methods What is an example of cash-based accounting? Options: a. Purchasing equipment in August and reporting the expense in September; b. Reporting income in June but receiving payment in July; c. Purchasing supplies in June and reporting the expense in July; d. Reporting expenses in September but paying bills in August Answer: a. Purchasing equipment in August and reporting the expense in September Budgeting What is NOT representative of the effective use of a budget? Options: a. Monitoring debt-to-equity ratio of a clinic; b. Tracking practice expenses against budgeted amounts; c. Identifying areas for cost reduction; d. Increasing staff salaries Answer: a. Monitoring debt-to-equity ratio of a clinic Financial Controls The basic purpose for instilling financial controls in your accounting processes is to: Options: a. Increase profitability by reducing costs; b. Ensure all financial transactions are properly recorded and reported; c. Simplify financial reporting and analysis; d. Separate basic functions so not all are performed by the same person Answer: d. Separate basic functions so not all are performed by the same person-even analysis