HSA 464 midterm UPDATED ACTUAL
Exam Questions and CORRECT Answers
The real key to understanding finance is - CORRECT ANSWER the elements of finance
and their relationship with each other
Managerial accounting is considered to be - CORRECT ANSWER both prospective and
retrospective
Inventory land cash and accounts receivable are all examples of - CORRECT
ANSWER assets
Net Worth - CORRECT ANSWER What the business is worth, net of liabilities
What are the segments that make a healthcare financial system work - CORRECT
ANSWER original records, info systems, accounting systems, reporting systems
Contractual allowances may be entered on the books of hospital and private practice offices -
CORRECT ANSWER true
Revenue flows into the organization (inflow) and is sometimes referred to as the revenue -
CORRECT ANSWER stream
In case of non-profit orgs, does the outflow of expenses increase or decrease fund balance -
CORRECT ANSWER decrease
Another term for responsibility center is - CORRECT ANSWER profit center
Direct costs can be traced while indirect costs have to be allocated - CORRECT
ANSWER true
, If the full establish rate is $1000 and agreed upon contractual rate to be paid is $800, then the
$200 difference is recorded on the books of the organization - CORRECT
ANSWER contractual allowance
Contractual allowances are difference between agreed upon contractual rate that will be paid and
the full - CORRECT ANSWER established rate
Expenses in their broadest sense are - CORRECT ANSWER Expired costs consumed
while carrying on business
Most frequent pattern of semi variable costs is the step pattern - CORRECT
ANSWER true
The contribution margin is computed by subtracting variable cost from net revenues -
CORRECT ANSWER true
If the contribution main is expressed as a percentage of net revenues, it is often called -
CORRECT ANSWER profit volume ratio
As number of patients goes up, fixed costs go - CORRECT ANSWER down
The break-even point is the point when the contribution margin equals - CORRECT
ANSWER fixed costs
Clinic pays flat monthly fee of $250 under 2 year contract for computer services. The monthly
fee for $250 is a fixed cost - CORRECT ANSWER
Book depreciation is the depreciation expense recorded in the financial accounting records and
reflected on the financial statements - CORRECT ANSWER true
Exam Questions and CORRECT Answers
The real key to understanding finance is - CORRECT ANSWER the elements of finance
and their relationship with each other
Managerial accounting is considered to be - CORRECT ANSWER both prospective and
retrospective
Inventory land cash and accounts receivable are all examples of - CORRECT
ANSWER assets
Net Worth - CORRECT ANSWER What the business is worth, net of liabilities
What are the segments that make a healthcare financial system work - CORRECT
ANSWER original records, info systems, accounting systems, reporting systems
Contractual allowances may be entered on the books of hospital and private practice offices -
CORRECT ANSWER true
Revenue flows into the organization (inflow) and is sometimes referred to as the revenue -
CORRECT ANSWER stream
In case of non-profit orgs, does the outflow of expenses increase or decrease fund balance -
CORRECT ANSWER decrease
Another term for responsibility center is - CORRECT ANSWER profit center
Direct costs can be traced while indirect costs have to be allocated - CORRECT
ANSWER true
, If the full establish rate is $1000 and agreed upon contractual rate to be paid is $800, then the
$200 difference is recorded on the books of the organization - CORRECT
ANSWER contractual allowance
Contractual allowances are difference between agreed upon contractual rate that will be paid and
the full - CORRECT ANSWER established rate
Expenses in their broadest sense are - CORRECT ANSWER Expired costs consumed
while carrying on business
Most frequent pattern of semi variable costs is the step pattern - CORRECT
ANSWER true
The contribution margin is computed by subtracting variable cost from net revenues -
CORRECT ANSWER true
If the contribution main is expressed as a percentage of net revenues, it is often called -
CORRECT ANSWER profit volume ratio
As number of patients goes up, fixed costs go - CORRECT ANSWER down
The break-even point is the point when the contribution margin equals - CORRECT
ANSWER fixed costs
Clinic pays flat monthly fee of $250 under 2 year contract for computer services. The monthly
fee for $250 is a fixed cost - CORRECT ANSWER
Book depreciation is the depreciation expense recorded in the financial accounting records and
reflected on the financial statements - CORRECT ANSWER true
