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Q:
when a companys bonds are sold, the purchaser expects to receive a certain amount of interest that is usually paid annually. a. correct b. not correct c. not applicable
Q:
when a companys bonds are sold, they represent: a. the companys promise to pay at a future date b. an expectation that the bonds will be redeemed at or on a certain date c. that the redemption date of the bonds will typically be several years in the future d. all of the above
Q:
selling bonds is a common example of: a. borrowing from investors b. borrowing from the government c. borrowing from a lending institution d. buying back stock of the company e. none of the above
Q:
when a mortgage from a lending institution is obtained, the usual purpose of this long-term borrowing is to finance: a. land b. buildings and/or equipment c. research and development d. buying back stock of the company e. a & b f. a, b & c g. a, b & d
Q:
borrowing from investors assumes the organization: a. has the proper legal structure to do so b. is large enough to do so c. has previously borrowed from investors d. has previously borrowed from one or more lending institutions e. a & b f. a & c g. a & d
Q:
hillwood clinic has borrowed $90,000 from the bank with the following terms: $20,000 of the this amount to be paid in year 1, $30,000 to be paid in year 2, and $40,000 to be paid in year 3 . time continues to move on, and hillwood has met the terms of the note in both year 1 and year 2 . therefore at the beginning of year 3 the remaining portion of the loan is now classified as follows: a. $70,000 long-term note payable b. $70,000 short-term note payable plus zero long-term note payable c. $40,000 long-term note payable d. none of the above
Q:
hillwood clinic has borrowed $90,000 from the bank with the following terms: $20,000 of the this amount to be paid in year 1, $30,000 to be paid in year 2, and $40,000 to be paid in year 3. time moves on, and hillwood meets the terms of the note in year 1 . therefore at the beginning of year 2 the remaining portion of the loan is now classified as follows: a. $70,000 long-term note payable b. $30,000 short-term note payable plus $40,000 long-term note payable c. $20,000 short-term note payable plus $50,000 long-term note payable d. none of the above
Q:
hillwood clinic borrows $90,000 from the bank with the following terms: $20,000 of the this amount to be paid in year 1, $30,000 to be paid in year 2, and $40,000 to be paid in year 3 . at the beginning of year 1 the loan is classified as follows: a. $20,000 short-term note payable plus $70,000 long-term note payable b. $50,000 short-term note payable plus $40,000 long-term note payable c. $90,000 long-term note payable d. none of the above
Q:
woodside hospice borrows $10,000 from the bank to make up for a lag in cash flow due to non-collection of a large account receivable. the loan is to be repaid at the end of ninety days, when collection of the account receivable is expected. amblesides loan is classified as: a. an accounts receivable reserve b. an accounts payable debit c. a short-term note payable d. none of the above
Q:
loans borrowed from a lending institution are typically classified by the length of the loan. ambleside lake nursing facility borrows $25,000 to be repaid at the end of eighteen months. amblesides loan is classified as: a. short-term borrowing b. long-term borrowing c. either of the above d. neither of the above
Q:
the brown and bishop physician group, a limited liability corporation (llc), owes $800,000 in debt and has $200,000 in partners equity. the llcs capital structure, or debt-equity relationship, is therefore: a. 8-to-2 b. 2-to-8 c. 80-20 d. 20-80 e. none of the above
Q:
the andrews and anderson physician practice partnership owes $400,000 in debt and has $600,000 in partners equity. the partnerships capital structure, or debt-equity relationship, is therefore: a. 2-to-3 b. 3-to-2 c. 60% d. 40-60 e. 60-40 f. none of the above
Q:
the phillips and potter physician practice partnership owes $500,000 in debt and also has $500,000 in partners equity. the partnerships capital structure, or debt-equity relationship, is therefore: a. 1-to-1 b. 50-50 c. 100% d. none of the above
Q:
one traditional source of capital involves retaining the excess of revenues over expenses. the acme pharmaceutical company, a for-profit corporation, is a relatively small start-up company. as a start-up, acme has recorded operating losses for each of its five years of existence. the company now needs to raise more capital for research and development. will retaining the excess of revenues over expenses be a possible source of capital for acme? a. yes b. no c. not applicable
Q:
yorks chairman of the board, agrees that the york pharmaceutical company needs to raise the required capital for expansion. however, the chairman argues that borrowing from a couple of large investors is the desired way for york to raise capital. is the chairmans solution of borrowing from investors a typical source of capital for proprietary companies? a. yes b. no c. not applicable
Q:
yorks president and ceo recognizes that the york pharmaceutical company needs to raise the required capital for expansion. however, the president argues that borrowing from the bank where they have always done business is the desired way for york to raise capital. is the presidents solution of borrowing from the bank a typical source of capital for proprietary companies? a. yes b. no c. not applicable
Q:
the york pharmaceutical company, a for-profit corporation, needs to raise more capital for a planned expansion. yorks cfo suggests selling additional stock in the company in order to raise the needed capital. is the cfos suggestion of selling additional stock a typical source of capital for proprietary companies? a. yes b. no c. not applicable
Q:
"capital" represents the financial structure of the organization. it is generally considered to be: a. debt b. a combination of debt and equity c. a combination of equity and assets d. none of the above
Q:
preferred stock has preference over __________ stock in certain issues such as payment of dividends.
Q:
smaller public companies may not be listed on a stock exchange. the stock of these companies is considered to be unlisted; instead, their stock is traded __________.
Q:
municipal bonds can either be general obligation bonds or __________ bonds.
Q:
the gross domestic product (gdp) is considered to be the "gold standard" measure of the country's overall economic fitness.
Q:
mortgage bonds are typically backed, or secured, by certificates of deposit.
Q:
"indexed to inflation" means monies will fall in accordance with an inflationary increase.
Q:
the fdic insures deposits in banks and thrift institutions up to a certain limit. savings accounts, checking accounts and other eligible deposit accounts are combined to reach the deposit insurance limit.
Q:
annuities are insured by the federal insurance deposit corporation (fdic).
Q:
cash equivalents are termed liquid assets because they can be liquidated and turned into cash on short notice when needed.
Q:
the price index for gross domestic purchases issued by the bureau of economic analysis (bea) measures: a. prices paid by u.s. residents b. prices paid by world-wide residents c. prices paid by north american residents d. any of the above e. none of the above
Q:
the gross domestic product (gdp) measures the output of goods and services produced by: a. investment b. labor and property c. both of the above d. neither of the above
Q:
inflation is feared because it: a. typically results in a fall in prices b. limits or reduces the economic activity of the country c. reduces the spending power of dollars d. typically results in a rise in prices e. a & b f. a & c g. b & c h. c & d
Q:
deflation is feared because it: a. typically results in a fall in prices b. limits or reduces the economic activity of the country c. reduces the spending power of dollars d. typically results in a rise in prices e. a & b f. a & d g. b & c h. c & d
Q:
typical investment indicators may include the: a. annual rate of inflation b. gross domestic product c. annual rate of deflation d. a, b & c e. a & b f. none of the above
Q:
stock exchanges exist to trade the stock of: a. publicly held companies b. both privately and publicly held companies c. either of the above d. neither of the above
Q:
closely held stock represents stock that is owned by a company that: a. is traded on the stock exchange b. is not traded on the stock exchange c. either of the above d. neither of the above
Q:
a small company with common stock that is not traded is known as a: a. privately-held company b. public company c. either of the above d. neither of the above
Q:
stock warrants: a. do not pay dividends b. pay dividends c. either of the above d. neither of the above
Q:
convertible preferred stock is a type of preferred that: a. can be exchanged for common shares b. can never be exchanged for common shares c. either of the above d. neither of the above
Q:
an individual or organization that buys bonds issued by a company typically becomes: a. the companys creditor b. the companys investor c. both of the above d. neither of the above
Q:
an individual or organization that buys stock in a company becomes: a. the companys creditor b. the companys investor c. both of the above d. neither of the above
Q:
preferred stock: a. generally has a fixed-rate dividend payment b. is eligible to receive a certain portion of the net income of the company who issued the stock c. both of the above d. neither of the above
Q:
stocks that are owned represent: a. net worth in the company b. equity in the company c. both of the above d. neither of the above
Q:
holders of debentures are: a. secured creditors b. unsecured creditors c. either of the above d. neither of the above
Q:
debentures are bonds that are typically backed by: a. real property (real estate) b. cash equivalents c. revenues earned by the issuing company d. any of the above e. none of the above
Q:
the eastern seaboard region has an existing local healthcare financing authority. general hospital, a local not-for-profit hospital, needs to expand its emergency department. the hospitals cfo suggests that it may be possible to finance the emergency department expansion through bonds issued by the local healthcare financing authority. a. the cfos suggestion is correct b. the cfos suggestion is not correct c. not applicable d. dont know
Q:
eligible healthcare organizations that may be able to issue bonds through a local healthcare financing authority include: a. for-profit (proprietary) organizations b. not-for-profit organizations c. both of the above d. neither of the above
Q:
alpine county is planning to issue thirty-year bonds for a new capital project. the bonds will be backed by the full taxing authority of the county, and by its full faith and credit. these bonds are therefore: a. general obligation bonds b. revenue bonds c. neither of the above
Q:
municipal bonds may be issued by a: a. county b. state c. political subdivision d. all of the above
Q:
bonds are typically: a. long-term contracts b. short-term contracts c. both of the above d. neither of the above
Q:
bonds: a. are assets to the issuing company b. are liabilities to the issuing company c. will accrue interest for the benefit of the issuing company d. none of the above
Q:
the fdic generally provides separate coverage for: a. keoghs b. iras c. both of the above d. neither of the above
Q:
being knowledgeable about the meaning that lies behind investment terms allows you a wider view of finance transactions. a. correct b. not correct c. not applicable
Q:
money market funds are: a. currency b. cash equivalents c. either of the above d. neither of the above
Q:
short term securities will mature in: a. one year or less b. one year or more c. either of the above d. neither of the above
Q:
investments should be recorded on the a. income statement b. balance sheet c. neither of the above
Q:
treasury bills: a. pay the full amount invested if redeemed at maturity b. have a minimum dollar amount to purchase c. are typically issued with maturities of three, six or twelve months d. all of the above e. none of the above
Q:
other cash equivalents may include: a. currency b. bank savings accounts c. government securities d. all of the above e. a and c only f. a and b only
Q:
cash equivalents include: a. certificates of deposit from banks b. bank checking accounts c. money market funds d. all of the above e. a and c only f. a and b only
Q:
for a pharmacy division, within the sequential steps to compute estimated ending drug inventory, what percent of net sales represents cost of goods (drugs) sold if net sales are $1,000,000 and dollar amount of cost of goods (drugs) sold is $700,000?
Q:
four reasons for common uses of estimates include timeliness considerations, cost/benefit considerations, preparation of internal monthly statements, and __________.
Q:
within the sequential steps to compute estimated ending drug inventory, the beginning drug inventory plus the net drug purchases equals __________.
Q:
when considering the use of an estimate, the first question should be: "is it capable of being estimated?"
Q:
pareto diagrams are often constructed before and after improvement efforts for comparative purposes. when comparing before and after, if the improvement measures are effective, either the order of the bars will change or the curve will be much flatter.
Q:
quartiles represent a distribution into four classes, each of which contains twenty percent of the whole.
Q:
quartiles can effectively illustrate a variety of performance measures. quartiles are based on a qualitative method of computation.
Q:
pareto analysis is an analytical measurement tool based on the pareto principle. the pareto principle is often called the "60/40 rule".
Q:
a pareto diagram: a. displays the important causes of variation b. uses data collected about such causes of variation c. typically reinforces the idea that a small number of cases cause the most problems d. all of the above
Q:
a pareto diagram has: a. two vertical axes and one horizontal axis b. two horizontal axes and one vertical axis c. neither of the above d. dont know
Q:
pareto analysis is: a. an analytical tool b. named after an actual person c. often summarized by the pareto rule d. all of the above
Q:
to arrive at an estimated ending inventory figure: a. an estimated cost of goods sold is subtracted from cost of goods available for sale b. beginning inventory plus purchases equals cost of goods available for sale c. a percentage of sales is typically used as the estimated cost of goods sold d. all of the above
Q:
a financial benchmark example within the text presents examples of quartile results. for the line item total margin, the upper quartile result is high (11.0%) and the low quartile result is low (-6.0). using your judgment and what you have learned to date, is the low quartiles low result: a. better than the upper quartiles b. worse than the upper quartiles c. not applicable d. dont know
Q:
a financial benchmark example within the text presents examples of quartile results. for the line item long term debt as a percentage of total assets, the upper quartile result is low (26) and the low quartiles result is high (42). using your judgment and what you have learned to date, is the low quartile high result: a. better than the upper quartiles b. worse than the upper quartiles c. not applicable d. dont know
Q:
to report using quartiles, results must first be divided into: a. eight groups b. three groups c. four groups d. none of the above
Q:
peer group financial benchmarking in healthcare typically compares: a. financial measures among divisions within an organization b. financial measures among benchmarking groups c. nonfinancial measures among benchmarking groups d. none of the above
Q:
recognized types of benchmarks include: a. a financial variable not reported in an accounting system b. a financial variable reported in an accounting system c. both of the above d. neither of the above
Q:
a nonfinancial variable is acknowledged as one type of benchmark: a. correct b. not correct c. not applicable d. dont know
Q:
david smith has recently become vice president of finance for the new age clinics organization, located in the state of new york. new age clinics has recently acquired three small chains of clinics and is struggling to consolidate their varying processes into the organization. david suggests using a benchmarking method to highlight what needs to be accomplished within the integration process. he further suggests they examine the process of a particular clinic chain with a world-class reputation. the chain is located far away from the new age market area, and is thus a non-competitor. is examining the process of non-competitors with a world-class reputation a recognized method of benchmarking? a. yes b. no c. not applicable
Q:
western nursing facility is experiencing falling occupancy and resultant losses. the western administrator suggests adopting a benchmarking method that studies the methods and results of their prime competitor, the golden age nursing facility. golden age, located in the same town, is at nearly 95% occupancy and is profitable. is examining your prime competitors methods and results a recognized method of benchmarking? a. yes b. no c. not applicable
Q:
dr. gray, chairman of the executive committee for a large physician group, decides to create an ongoing benchmarking project. he chooses to measure his groups data against available ama national data and the first report is completed. shortly thereafter another physician becomes chairman and kills the project. conceptually speaking, can the one and only first report be called a benchmarking process? a. yes b. no c. not applicable
Q:
robert, the controller for a community hospital, is responsible for commencing a benchmarking project. the hospital is part of a 15-hospital system, so robert decides he can look inside his own organizations system in order to find best levels of performance for measurement purposes. is this approach acceptable for benchmarking purposes? a. yes b. no c. not applicable
Q:
jeremy, the controller for a hospice, must commence a benchmarking project. jeremy decides he needs to look outside his organization in order to find best levels of performance for measurement purposes. is this approach acceptable for benchmarking purposes? a. yes b. no c. not applicable