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Q:
certain organizations may also group their revenue-producing cost centers as follows: a. nursing services versus other professional services b. maintenance versus laundry c. support services versus security
Q:
some organizations designate whether their cost centers are: a. located on campus versus located off campus b. revenue producing versus non-revenue producing c. none of the above
Q:
examples of cost centers may include the: a. medical records division b. billing and collection office c. an individual security guards costs d. a & b e. a & c f. b & c g. all of the above
Q:
if departments are designated as cost centers, reports are generally distributed as follows: a. the cost center manager receives the cost centers (departments) reports b. the director in charge of multiple cost centers receives a larger report c. the chief executive officer receives a total report of all cost centers d. all of the above e. none of the above
Q:
if departments are designated as cost centers, it is logical because: a. the organizations lines of authority are typically organized by department b. departmental cost centers can then be grouped into larger groups that have something in common c. both of the above d. neither of the above
Q:
depending upon the structure of the organization, a cost center might be: a. an office b. a division c. a department d. all of the above e. none of the above
Q:
a particular unit of an organization that is given responsibility for controlling costs of the operations over which it holds authority is called a: a. cost center b. revenue center c. neither of the above
Q:
drgs serve as the basic classification system for mdcs, or major diagnostic categories. a. correct b. not correct c. dont know
Q:
a group of patients whose resource consumption is, on statistical average, equivalent: a. is termed a patient category b. is represented by a drg, or diagnosis-related group c. both of the above d. neither of the above
Q:
drgs, or diagnosis-related groups are: a. part of the retrospective payment reimbursement methodology b. part of the prospective payment reimbursement methodology c. neither of the above
Q:
grouping expenses by diagnoses and/or procedures for planning and control is especially useful because much of the revenue in many healthcare organizations is designated by either diagnoses or procedures. a. correct b. not correct c. not applicable
Q:
grouping expenses by diagnoses for planning and control is beneficial because it: a. matches commonly used expense classifications against costs b. matches commonly used revenue classifications against costs c. either of the above d. neither of the above
Q:
cost centers within the cost report are grouped into: a. three categories b. five categories c. seven categories d. none of the above
Q:
the cost reports beginning trial balance consists of: a. three columns b. two columns c. five columns d. seven columns e. none of the above
Q:
within cost reports, the cost center is: a. the same as a responsibility centers cost center that is used for planning and control b. a focus of the overall cost report methodology c. a type of cost pool used in the cost-finding process d. a & b e. a & c f. b & c g. none of the above
Q:
within the cost report, the primary purpose of a cost center is to help: a. allocate overhead b. divide direct salaries into groups c. provide a distinction between inpatient and outpatient costs d. all of the above e. none of the above
Q:
on the cost report, the central worksheets for cost finding are: a. worksheet a b. worksheet a-1 c. worksheet b d. worksheet b-1 e. worksheet e f. worksheets a, a-1 and b g. worksheets a, b and b-1 h. worksheets b and e
Q:
expired costs will be matched against: a. current revenues b. future revenues c. either of the above d. neither of the above
Q:
expenses represent: a. expenditures that flow into the organization b. expenditures that flow out of the organization c. neither of the above
Q:
when operating expenses for an organization are (a) reduced to a rate per day and (b) compared with the amount in accounts payable, this computation: a. results in a figure known as days in accounts payable b. represents one measurement of operations within the organization c. both of the above d. neither of the above
Q:
in most healthcare organizations, an expense is paid: a. at a later time, after the expense is incurred b. at the point where the expense is incurred c. neither of the above
Q:
a narrower interpretation of the term expense: a. only considers expenses that are operating expenses b. disregards deductions from revenue c. groups expenses into categories d. all of the above e. none of the above
Q:
the term expense: a. may include the amount of cash expended (or services performed) in consideration of goods or services received or to be received b. may include every expired cost that is deductible from revenue c. is interchangeable with the term cost d. all of the above
Q:
expenses are the: a. costs of doing business b. costs that relate to earning revenue c. both of the above d. neither of the above
Q:
expenses represent: a. the outflow from the business b. the inflow into the business c. a stream of expenditures that flow out of the organization d. a & b e. a & c f. b & c g. none of the above
Q:
inpatient versus outpatient grouping of expenses: a: recognizes different sites at which services are delivered b. is a basic type of care setting grouping c. both of the above
Q:
procedure codes, known as current procedural terminology (cpt) codes, are most commonly used to group cost centers for: a. inpatient services b. outpatient services c. both of the above
Q:
expenses in their broadest sense are: a. both expired and unexpired costs b. expired costs consumed while carrying on business c. neither of the above
Q:
revenue flows into the organization (inflow) and is sometimes referred to as the revenue __________.
Q:
contractual allowances are the difference between the agreed-upon contractual rate that will be paid and the full __________.
Q:
health maintenance organizations (hmos) and preferred provider organizations (ppos) are both revenue sources for many health care providers.
Q:
private pay revenue is more prevalent in hospitals than in nursing facilities or assisted living facilities.
Q:
when grouping accounts for planning or control, it is permissible to classify revenues by either service line or disease management category.
Q:
if a certain method of grouping revenue for planning and control is generally accepted in other health care facilities, it is not strictly necessary for such a method to be consistent with the current structure of the facility where it is in use.
Q:
it is not uncommon for different plans to pay different contractual rates for the same service.
Q:
one method of grouping revenue is by revenue source. such grouping by revenue source may typically include the following: a. title xviii and title xix revenue b. private pay revenue c. hmo and ppo revenue d. commercial insurer and other revenue e. all of the above
Q:
grouping revenue by care settings for planning and control recognizes:
a. different sites at which services are delivered
b. activities that are grouped by responsibility center
c. similar services and groups them into service lines
d. the most basic grouping of inpatient versus ambulatory services
e. a & b
f. b & c
g. a & d
Q:
payer mix: a. represents the various proportions of revenues that are realized from different types of payers b. is a measure often included in a healthcare organizations profile c. is called payer mix in part because the sources of healthcare revenue are typically called payers d. all of the above e. none of the above
Q:
discounted fee for service contracts may include fee schedules. a. correct b. not correct c. not applicable
Q:
sources of healthcare revenue in the united states include: a. a variety of public programs b. private payers c. certain governmental sources d. all of the above e. none of the above
Q:
if a contractual agreement to pay for services uses varying assumptions about the group to be served: a. significant variation in such assumptions will affect the rates that are set for these services b. the use of such group assumptions indicates this is an agreement to pay before service is delivered c. the use of such group assumptions indicates this is an agreement to pay after service is delivered d. a & b e. b & c f. none of the above
Q:
predetermined per-person payment received: a. is a payment method after the service is delivered b. generally consists of an amount received at the agreed-upon rate c. is typically a per-person count at a particular point in time d. a & b e. a & c f. b & c g. none of the above
Q:
basic types of payment after service is delivered include: a. fee for service b. discounted fee for service c. predetermined per-person payment d. a & b e. a & c f. b & c
Q:
the traditional payment method in health care is: a. payment before service is delivered b payment after contracts are negotiated c. payment after service is delivered d. none of the above
Q:
whether payment is received before or after service delivery: a. often influences the amount of liabilities recorded b. is one way that expenses are classified c. often influences the amount of revenue received d. is one way that revenue is classified e. a & b f. c & d g. none of the above .
Q:
if the full established rate for a procedure is $1,000 and the agreed-upon contractual rate to be paid is $800, then the $200 difference is recorded on the books of the organization as: a. a contractual allowance b. a discount c. neither of the above
Q:
contractual allowances may be entered on the books of: a. hospitals b. physician offices c. both of the above d. not applicable
Q:
contractual allowances: a. are often for composite services b. are never for composite services c. not applicable
Q:
revenue amounts estimated to be uncollectible are: a. considered to be deductions from revenues b. are recorded on the organizations books as deductions from revenue c. considered to be part of the revenue stream d. are never recorded on the organizations books e. a & b f. c & d
Q:
allowance for bad debts: a. is also known as a provision for doubtful accounts b. represents a major type of deduction from revenue classification c. both of the above d. neither of the above
Q:
the town center clinics physician group has contracted with various managed care plans. for visit code 99213, plan a has contracted to pay $55.00, plan b has contracted to pay $39.00, and plan c has contracted to pay $46.00. (these rates are examples only.) the variation in amounts paid by managed care plans for this visit code is: a. commonly accepted in healthcare today b. unusual and not a commonly accepted method c. considered to be a survival method d. none of the above
Q:
charity service is: a. generally defined as services provided to financially indigent patients b. represents a major type of deduction from revenue classification c. both of the above d. neither of the above
Q:
assume the following: greenville hospitals full established rate for a certain procedure is $200, but the eastern health plans managed care contract pays the hospital only $180 for the procedure.
what is the correct recorded revenue figure?
a $180
b $200
c $190
d none of the above
Q:
revenue is typically defined as the value of services rendered, expressed at: a. established rates net of discounts b. regional established rates c. market value d. none of the above
Q:
most, though not all, healthcare revenues are received in the form of: a. cash b. credit c. notes receivable d. exchange of services e. none of the above
Q:
revenues can be received in the form of: a. cash b. credit c. either cash or credit d. none of the above
Q:
revenue typically represents earned amounts that are: a. due to the organizations major business b. due to any business function the organization may perform c. neither of the above
Q:
revenue represents: a. actual cash inflows b. expected cash inflows c. actual cash outflows d. expected cash outflows e. a & b f. c & d g. none of the above
Q:
the term revenue represents: a. amounts earned by an organization b. amounts expended by an organization c. the excess of cash remaining after disbursements d. none of the above
Q:
in the case of healthcare, revenue is typically earned by: a. rendering services to the community b. rendering services to patients c. professionals such as physicians d. organizations such as hospitals
Q:
typical classifications used to group revenue include: a. revenue source b. revenue centers c. care settings d. service lines e. all of the above
Q:
the medicare program legislation is contained in: a. title xix of the social security act b. title xviii of the social security act c. both of the above
Q:
the medicaid program: a. is funded exclusively by federal funds b. provisions are state specific within broad federal national guidelines c. both of the above
Q:
major deductions from revenue include: a. provision for bad debts b. contractual allowance c. charity service d. all of the above
Q:
pre-determined per-person payment indicates: a. payment after the service is delivered b. payment before the service is delivered c. either a or b
Q:
if an asset cannot be converted into cash within a twelve-month period, it is considered to be a __________ asset.
Q:
"__________ assets" is another word for short-term assets.
Q:
the accounting equation that reflects a relationship among three parts can be stated as follows: "liabilities plus net worth equals __________".
Q:
the economic resources that have expected future benefit to the business are called __________.
Q:
a corporation will generally report two types of equity accounts: "capital stock" and "__________".
Q:
a sole proprietorship's or a partnership's net worth may be labeled as __________.
Q:
classification of a note payable liability depends on the length of time that payment is promised.
Q:
the three parts of the accounting equation must always balance among themselves, because that is how they fit together.
Q:
liabilities are also called "insider claims".
Q:
"insider claims" are called owner's equity or net worth because these are claims held by owners of the business.
Q:
at the worth & williams clinic, if short-term liabilities are $10,000, long-term liabilities are $70,000, owners equity is $30,000 and current assets are $20,000. what is the total asset figure? a. $100,000 b. $110,000 c. $130,000 d. none of the above
Q:
equity is the: a. money value of property b. ownership right in property c. both of the above d. neither of the above
Q:
at the general care clinic, if total assets are $100,000 and long term assets are $60,000 and other assets are $10,000 what is the current asset amount? a. $30,000 b. $40,000 c. neither of the above
Q:
at xyz corporation, if retained earnings are $10,000 and liabilities are $25,000, what is the total asset amount? a. $35,000 b. $50,000 c. an unknown figure d. none of the above
Q:
at abc company, if assets equal $50,000 and liabilities equal $30,000, what is the total of liabilities and net worth? a. $20,000 b. $50,000 c. $70,000 d. none of the above