BUSI 323
Financial Analysis & Management
LATEST FINALS REVIEW
Q&S
©2024/2025
,1. Which financial statement offers a snapshot of the healthcare
organization's financial position at a specific point in time?
A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Statement of Changes in Equity
Answer: B) Balance Sheet
Rationale: The balance sheet provides a snapshot of the
organization's assets, liabilities, and equity at a specific point in
time.
2. What is the primary goal of cost-volume-profit (CVP) analysis
in a healthcare setting?
A) Determine patient satisfaction levels
B) Analyze the impact of financial risk
C) Assess profitability at different levels of activity
D) Predict cash flow trends
Answer: C) Assess profitability at different levels of activity
©2024/2025
, Rationale: CVP analysis helps in understanding how changes in
costs and volume affect a company's operating income and net
income.
3. Which of the following is NOT a component of working
capital management in healthcare?
A) Inventory management
B) Capital budgeting
C) Accounts receivable management
D) Cash management
Answer: B) Capital budgeting
Rationale: Working capital management focuses on short-term
assets and liabilities, while capital budgeting is related to long-
term investment decisions.
4. What type of ratio is used to evaluate a healthcare
organization's ability to pay its long-term obligations?
A) Solvency ratio
B) Liquidity ratio
©2024/2025
Financial Analysis & Management
LATEST FINALS REVIEW
Q&S
©2024/2025
,1. Which financial statement offers a snapshot of the healthcare
organization's financial position at a specific point in time?
A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Statement of Changes in Equity
Answer: B) Balance Sheet
Rationale: The balance sheet provides a snapshot of the
organization's assets, liabilities, and equity at a specific point in
time.
2. What is the primary goal of cost-volume-profit (CVP) analysis
in a healthcare setting?
A) Determine patient satisfaction levels
B) Analyze the impact of financial risk
C) Assess profitability at different levels of activity
D) Predict cash flow trends
Answer: C) Assess profitability at different levels of activity
©2024/2025
, Rationale: CVP analysis helps in understanding how changes in
costs and volume affect a company's operating income and net
income.
3. Which of the following is NOT a component of working
capital management in healthcare?
A) Inventory management
B) Capital budgeting
C) Accounts receivable management
D) Cash management
Answer: B) Capital budgeting
Rationale: Working capital management focuses on short-term
assets and liabilities, while capital budgeting is related to long-
term investment decisions.
4. What type of ratio is used to evaluate a healthcare
organization's ability to pay its long-term obligations?
A) Solvency ratio
B) Liquidity ratio
©2024/2025
