HCAD 760 EXAM-ACTUAL EXAM-LATEST UPDATE 2025| COMPLETE
QUESTIONS WITH CORRECT DETAILED AND VERIFIED ANSWERS-MOSTLY
TESTED QUESTIONS| RATED 100% CORRECT!! ALREADY GRADED A+
The major provisions of the Patient Protection and Affordable care act of 2010 were? -
(answers)Medicaid expansion, banning of preexisting condition coverage limitations, free
preventive care
Which of the following statements about the finance department at large healthcare organizations
is/are correct? - (answers)The CFO usually is assisted by a comptroller and treasurer/reports
directly to the CEO/headed by CFO or VP
In a not for profit hospital, the following are examples of a stakeholder - (answers)Community;
employee; vendor
Stockholders have all the following rights - (answers)Right of control/claim on residual
liquidation proceeds/a possible dividend and/or capital gains
Which of the following statements about finance, accounting, and financial management is most
correct? - (answers)Financial management provides the theory, concepts, and tools necessary to
help managers make better financial decisions.
What is a disadvantage of being a corporation? - (answers)External reporting
Which of the following are not finance activities? - (answers)Facilities management
What is Not an advantage of a proprietorship? - (answers)Unlimited liability
A not for profit corporation can also be called a 529(b) - (answers)False
The primary goal of investor owned corporations is shareholder wealth maximization -
(answers)True
,Individuals at greater risk of needing health care are more likely to purchase insurance -
(answers)Adverse selection
The fixed amount for a covered service that the insurer mandates that the patient pay to the
provider before the patient receives service from the provider - (answers)Copayments
The amount that must be paid out of pocket by the policyholder before an insurance provider will
pay any expenses - (answers)Deductibles
Requires an individual to pay for a certain percentage of the eligible medical expenses -
(answers)Coinsurance
The risk of overuse of health services because the injured does not bear the full cost of the
consequences - (answers)Moral hazard
Medicare part A - (answers)Covers hospital and some skilled nursing home coverage
Medicare Part D - (answers)Covers prescription drugs
Medicare Part C - (answers)Is often called Med Adv
Providers were reimbursed for "actual" costs - (answers)Cost-based
Payers pay based off pre-determined "chargemaster" these payments are usually discounted up to
20% to 50% - (answers)Charge based
Are used to pay for either a predefined procedure, diagnosis, per diem or bundled service -
(answers)Prospective payment
Payment is (usually) made on a per member per month basis - (answers)Capitation
, Has potential to result in "gamesmanship" that can inflate healthcare charges - (answers)Charge
based
No incentive to control costs - (answers)Cost based
Providers may have an incentive to reduce utilization - (answers)Capitation
May result in up coding - (answers)Prospective payment
Under the broad category of FFS, what are the three main types of ffs service methodologies -
(answers)Cost based; prospective payments; charge based
True statements about ICD Codes - (answers)The greater number of digits in the code, the more
detailed the disease; ICD stands for International Classification of Diseases; The codes usually
consist of 3, 4, 5, 6, or 7 digits/characters; ICD-10 is the current standard
Identify all of the different types of managed care insurance plans - (answers)HMOs, POS plans,
PPOs
Relative value units (RVUs) are standards that are payment components consisting of the
following: - (answers)Work expense; malpractice/liability expense; practice expenses
For insurance to "work", it must have these basic characteristics - (answers)Payment only for
random (unforeseen and unexpected) losses; risk transfer; pooling of losses
Under the PPACA, insurance companies have to use community ratings - (answers)True
Materiality - (answers)GAAP Constraint
Expense Matching - (answers)GAAP Principle
QUESTIONS WITH CORRECT DETAILED AND VERIFIED ANSWERS-MOSTLY
TESTED QUESTIONS| RATED 100% CORRECT!! ALREADY GRADED A+
The major provisions of the Patient Protection and Affordable care act of 2010 were? -
(answers)Medicaid expansion, banning of preexisting condition coverage limitations, free
preventive care
Which of the following statements about the finance department at large healthcare organizations
is/are correct? - (answers)The CFO usually is assisted by a comptroller and treasurer/reports
directly to the CEO/headed by CFO or VP
In a not for profit hospital, the following are examples of a stakeholder - (answers)Community;
employee; vendor
Stockholders have all the following rights - (answers)Right of control/claim on residual
liquidation proceeds/a possible dividend and/or capital gains
Which of the following statements about finance, accounting, and financial management is most
correct? - (answers)Financial management provides the theory, concepts, and tools necessary to
help managers make better financial decisions.
What is a disadvantage of being a corporation? - (answers)External reporting
Which of the following are not finance activities? - (answers)Facilities management
What is Not an advantage of a proprietorship? - (answers)Unlimited liability
A not for profit corporation can also be called a 529(b) - (answers)False
The primary goal of investor owned corporations is shareholder wealth maximization -
(answers)True
,Individuals at greater risk of needing health care are more likely to purchase insurance -
(answers)Adverse selection
The fixed amount for a covered service that the insurer mandates that the patient pay to the
provider before the patient receives service from the provider - (answers)Copayments
The amount that must be paid out of pocket by the policyholder before an insurance provider will
pay any expenses - (answers)Deductibles
Requires an individual to pay for a certain percentage of the eligible medical expenses -
(answers)Coinsurance
The risk of overuse of health services because the injured does not bear the full cost of the
consequences - (answers)Moral hazard
Medicare part A - (answers)Covers hospital and some skilled nursing home coverage
Medicare Part D - (answers)Covers prescription drugs
Medicare Part C - (answers)Is often called Med Adv
Providers were reimbursed for "actual" costs - (answers)Cost-based
Payers pay based off pre-determined "chargemaster" these payments are usually discounted up to
20% to 50% - (answers)Charge based
Are used to pay for either a predefined procedure, diagnosis, per diem or bundled service -
(answers)Prospective payment
Payment is (usually) made on a per member per month basis - (answers)Capitation
, Has potential to result in "gamesmanship" that can inflate healthcare charges - (answers)Charge
based
No incentive to control costs - (answers)Cost based
Providers may have an incentive to reduce utilization - (answers)Capitation
May result in up coding - (answers)Prospective payment
Under the broad category of FFS, what are the three main types of ffs service methodologies -
(answers)Cost based; prospective payments; charge based
True statements about ICD Codes - (answers)The greater number of digits in the code, the more
detailed the disease; ICD stands for International Classification of Diseases; The codes usually
consist of 3, 4, 5, 6, or 7 digits/characters; ICD-10 is the current standard
Identify all of the different types of managed care insurance plans - (answers)HMOs, POS plans,
PPOs
Relative value units (RVUs) are standards that are payment components consisting of the
following: - (answers)Work expense; malpractice/liability expense; practice expenses
For insurance to "work", it must have these basic characteristics - (answers)Payment only for
random (unforeseen and unexpected) losses; risk transfer; pooling of losses
Under the PPACA, insurance companies have to use community ratings - (answers)True
Materiality - (answers)GAAP Constraint
Expense Matching - (answers)GAAP Principle
