HCAD 760 MIDTERM QUESTIONS WITH
CORRECT ANSWERS
1) policymaker or manager
2) type of healthcare organization - (ANSWER)definition of healthcare finance depends on the
context of:
health care finance - (ANSWER)the practice of finance, including both accounting & financial
management, within health services (provider) organizations
accounting - (ANSWER)measurement, in financial (dollar) terms, of events that reflect the
resources, operations, & financing of an organization; external reports, taxes
financial management - (ANSWER)theory, concepts, & tools necessary to help managers make
better financial decisions; internal, improves organization's opportunities & efficiency
No, both capture, measure, & use data, but with different purpose - (ANSWER)accounting &
financial mgmt independent?
1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue - (ANSWER)characteristics of business:
max shareholder return - (ANSWER)goals of business (for profit)
max community or mission benefit - (ANSWER)goals of pure charity
primary role of finance - (ANSWER)to plan for, acquire, & utilize resources to maximize the
efficiency (& hence value) of the enterprise
, 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management - (ANSWER)finance activities
Generally Accepted Accounting Principles - (ANSWER)GAAP
1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources - (ANSWER)Four C's (summarize finance activities)
CFO (VP-Finance)
Comptroller
Tresurer - (ANSWER)finance dept usually organized as follows:
comptroller - (ANSWER)handles budgeting & reporting & payables & receivables mgmt
treasurer - (ANSWER)handles acquisition & employment of capital, debt mgmt, & financial risk
mgmt
segregation of duties - (ANSWER)__________________________ decreases possibility of
stealing
hospital (inpatient)
CORRECT ANSWERS
1) policymaker or manager
2) type of healthcare organization - (ANSWER)definition of healthcare finance depends on the
context of:
health care finance - (ANSWER)the practice of finance, including both accounting & financial
management, within health services (provider) organizations
accounting - (ANSWER)measurement, in financial (dollar) terms, of events that reflect the
resources, operations, & financing of an organization; external reports, taxes
financial management - (ANSWER)theory, concepts, & tools necessary to help managers make
better financial decisions; internal, improves organization's opportunities & efficiency
No, both capture, measure, & use data, but with different purpose - (ANSWER)accounting &
financial mgmt independent?
1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue - (ANSWER)characteristics of business:
max shareholder return - (ANSWER)goals of business (for profit)
max community or mission benefit - (ANSWER)goals of pure charity
primary role of finance - (ANSWER)to plan for, acquire, & utilize resources to maximize the
efficiency (& hence value) of the enterprise
, 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management - (ANSWER)finance activities
Generally Accepted Accounting Principles - (ANSWER)GAAP
1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources - (ANSWER)Four C's (summarize finance activities)
CFO (VP-Finance)
Comptroller
Tresurer - (ANSWER)finance dept usually organized as follows:
comptroller - (ANSWER)handles budgeting & reporting & payables & receivables mgmt
treasurer - (ANSWER)handles acquisition & employment of capital, debt mgmt, & financial risk
mgmt
segregation of duties - (ANSWER)__________________________ decreases possibility of
stealing
hospital (inpatient)
