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Q:
What percentage of OCD patients are known to abuse substances?
a. 22%
b. 29%
c. 31%
d. none of these
Q:
Endogenous substances include endorphins, insulin and adrenalin.
Q:
Which neurotransmitter corresponds to satiation?
a. GABA
b. norepinephrine
c. serotonin
d. dopamine
Q:
Exogenous substances are produced within the body.
Q:
Research into the development of addition suggests that there may be ____ types of neurochemical responses.
a. 2
b. 3
c. 5
d. none of these
Q:
An organization's current liabilities can be located on its income statement.
Q:
The accounting rate of return takes into consideration the time value of money and when inflows are received.
Q:
The payback method ignores the time value of money.
Q:
Performance ratios use data from the statement of revenues and expenses.
Q:
Balance sheet numbers are used in computing liquidity and capitalization ratios.
Q:
The current ratio is a measurement of performance for evaluating the effective use of resources to deliver a service.
Q:
When a current ratio is 3.2, it indicates that the health care organization has only 3% of the cash it needs to cover its liabilities.
Q:
The current ratio can be calculated by using current liabilities as the denominator.
Q:
Fiscal-clinical analysis can be facilitated by examining the master charge list (or detailed billing statement) for a patient.
Q:
If an organization wants to know how long the collection period is that it is extending to its debtors on average, it would likely calculate the long-term debt ratio.
Q:
The days of revenue in patient accounts receivable ratio provide a measure of the average time receivables are outstanding.
Q:
When calculating the net accounts receivable turnover ratio, the correct divisor is net accounts receivables.
Q:
You have submitted a request to the board of directors to purchase a computer-based patient record system. The system is anticipated to save $45,000 in personnel operating costs each year for the next 3 years and will cost $110,000 to install. Operating and maintenance costs for the 3 years are estimated to be $5000 per year. The money to buy the equipment would come from an equipment fund, which is now earning 8%. Should the new system be purchased? Why?
Q:
You have submitted a request to the board of directors to purchase a computer-based patient record system. The system is anticipated to save $45,000 in personnel operating costs each year for the next 3 years and will cost $110,000 to install. Operating and maintenance costs for the 3 years are estimated to be $5000 per year. The money to buy the equipment would come from an equipment fund, which is now earning 8%. Calculate the payback period for the investment.
Q:
Saint Elsewhere Community Hospital is considering investing $90,000 in new transcription equipment to replace its current equipment, which is completely depreciated and outmoded. An alternative to this investment is a long-term contract with a local transcription firm to perform the transcription service. It is expected that the hospital would save $20,000 per year in operating costs if the transcription was performed internally. The expected and depreciable life of the equipment is 6 years. Calculate the net present value of the investment.
Q:
Saint Elsewhere Community Hospital is considering investing $90,000 in new transcription equipment to replace its present equipment, which is completely depreciated and outmoded. An alternative to this investment is a long-term contract with a local transcription firm to perform the transcription service. It is expected that the hospital would save $20,000 per year in operating costs if the transcription was performed internally. The expected and depreciable life of the equipment is 6 years. Assuming that Saint Elsewhere can borrow or invest money at 8%, calculate the payback year.
Q:
Define job order costing and explain how it is used in a health care organization.
Q:
Explain each of the following: accounting rate of return, payback method, and net present value.
Q:
List the major phases in developing the revenue budget.
Q:
What are "rolling budgets?"
Q:
What is the purpose of a budget?
Q:
What does writing off accounts receivable mean?
Q:
Why is the cash budget so important in managing a health care institution?
Q:
Explain the benefits of performing ratio analysis.
Q:
What is the major difference between a balance sheet and an income statement (or statement of revenues and expenses)?
Q:
What is a chart of accounts?
Q:
What is the fundamental accounting equation?
Q:
What is the major conceptual difference between zero-base budgeting and conventional budgeting?
Q:
One of the first steps in the budgeting process is to develop the statistics budget. Why?
Q:
Can an organization be effective but not efficient? Discuss the circumstances in which this could be true.
Q:
Under what conditions would you advocate developing a flexible budget?
Q:
Define the terms variable costs and fixed costs. Give examples of each.
Q:
What does it mean to say that a cost is direct?
Q:
Use the information below to answer the following questions. ROCKY HILLS HOSPITALBalance Sheet12/31/200XAssets 200XCurrent Assets*$ 2,438,776Fixed Assets 5,874,231Other Assets 558,432Total Assets$ 8,871,439 Liabilities and Fund Balances Current Liabilities Accounts and notes payable$345,798Staffing and payroll-related Other short-term payables841,621 10,102Total Current Liabilities$ 1,197,521 Long-Term Liabilities Long-term debt$5,950,728Note payable2,000,000Total Long-Term Liabilities$ 7,950,728 Total Liabilities$9,178,249Fund Balance$ (276,810) Total Liabilities and Fund Balance*Includes $1,438,776 in patient accounts receivable$ 8871,439 ROCKY HILLS HOSPITALIncome Statement1/1/200X-12/31/200XRevenues from Operations 200XPatient Services$2,855,500Less Contractual Allowances24,645Net Patient Service: Revenue$2,830,865Net Other Revenues123,744Total Revenue from Operations$2,954,609 Expenses from OperationsSalaries and Expenses$1,124,818Management Salaries and Expenses305,720Other Salaries and Expenses213,412Supplies and Books486,257Utilities38,110Depreciation542,333Interest and Other305,124Total Expenses from Operations$3,015,7741) Referring to the information given, compute the current ratio.2) Referring to the information given, compute the operating margin ratio3) Referring to the information given, compute the days of revenue in patient accounts receivable4) Referring to the information given, compute the return on assets5) Referring to the information given, how much depreciation expense would the hospital incur each year for the optical imaging components?6) Referring to the information given, what is the payback period for the optical imaging system components only?
Q:
Use the information below to answer the following question. ROCKY MOUNTAIN HOSPITALBalance Sheets12/31/20XXAssets 20XXCurrent assets (net)*$ 3,042,159Fixed Assets 7,101,233Other Assets 387,184Total Assets$ 10,530,576 Liabilities and Fund BalancesCurrent Liabilities Accounts and notes payable Staffing and payroll-related Other short term payables $ 514,6031,043,720 8,765Total Current Liabilities$ 1,567,088 Long-Term Liabilities Long-term debt Note payable$ 6,500,7722,000,000Total Long-Term Liabilities$ 8,500,772 Total Liabilities$10,067,760Fund Balance$ 462,816 Total Liabilities and Fund Balance*Includes $1,042,159 in patient accounts receivable$10,530,576 ROCKY MOUNTAIN HOSPITALIncome Statement1/1/20XX-12/31/20XXRevenues from Operations 20XXPatient Services$ 4,897,250Less Contractual Allowances21,260Net Patient Service: Revenue$ 4,875,990Net Other Revenues581,282Total Revenue from Operations$ 5,457,272 Expenses from OperationsSalaries and Expenses$ 1,227,850Management Salaries and Expenses594,243Other Salaries and Expenses305,986Supplies and Books914,361Utilities45,764Depreciation613,228Interest and Other226,781Total Expenses from Operations$ 3,928,213Net Income from Operations$ 1,529,0591) Referring to the information given, compute the current ratio.2) Referring to the information given, compute the operating margin ratio.3) Referring to the information given, compute the days of revenue in patient accounts receivable4) Referring to the information given, compute the return on assets.
Q:
It has now been 6 months since the new imaging rental services have been in operation. What report would the health information manager analyze to examine the department's current profit and loss position?
Q:
The health information manager needs to order some unexpected supplies for the new imaging services to improve processing efficiency. Before ordering, the manager wants to examine the financial condition of the department. What financial report should be analyzed?
Q:
The manager wants to calculate the operating margin ratio to evaluate the use of the department's resources in achieving its desired goals. What formula (data) should be used?
Q:
Besides monitoring the progress of the new imaging system, the health information manager is also interested in monitoring the overall financial stability of health information services quarterly. Which financial statement will depict the financial activity of the organization for this period of time?
Q:
The health information manager wants to calculate the accounts receivable turnover for the new imaging service. To do this, the manager will need what numerical data for the numerator of this equation?
Q:
On what report would the manager locate the gross revenue for health information imaging services to use as the numerator when calculating the accounts receivable turnover for the new imaging service?
Q:
In addition, the health information manager wants to monitor the accounts receivable carefully for the newly implemented system to track the (number of days) of revenue in accounts receivable. What financial statement would supply the needed information?
Q:
Which financial statement depicts the financial condition of an organization as of one date in time?
Q:
The CFO asks you to compare the value of purchasing new high-speed photocopying equipment with contracted copying services. What capital expenditure evaluation method would you use?
Q:
Name the four general types of budgets.
Q:
Which financial statement depicts the financial activity of an organization for a period of time?
Q:
To calculate the _________________________ for the committee's review, the net cash inflow and outflow were calculated for the proposed imaging system.
Q:
In preparation for implementing the system, the health information manager assigned a fee to the various services that will be provided by the Health Information Services department, including that for the new health information imaging service for physician offices. These charges will be incorporated in the ______________________________ by the managerial accountant.
Q:
____________________ is an example of fixed costs.
Q:
____________________ is an example of variable costs.
Q:
The statement of revenues and expenses and the balance sheet provide the foundation for ____________________ analysis.
Q:
A free-standing ambulatory care center incurs medical record folder costs of $3 per new patient and has a monthly rent payment on its space of $12,000. Which of these is a variable cost?
Q:
The financial accountant will add a designated account to the ____________________ for processing each transaction for the new imaging service.
Q:
___________________ to determine whether what is being expended in the newly implemented system is the same as what was planned.
Q:
After the imaging proposal was approved, the health information manager was able to complete the operating budget for consolidation in the hospital's ____________________ budget.
Q:
The condition of the ____________________ budget will be examined to determine whether sufficient cash will be available to meet the upcoming expenses for implementing the new service and also the one-time expense associated with the acquisition of the equipment and software.
Q:
The health information manager would include the estimated upkeep costs and supplies for the proposed imaging system in the ____________________ budget.
Q:
The predicted cost for two new full-time employees to operate the Health Information Imaging Service for physician offices would be included in the ____________________ budget.
Q:
In the process of preparing the various budgets, the proposed outlay for the optical imaging equipment would be included in the ____________________ budget.
Q:
During the planning process, the health information manager had no internal historical data (except for the number of physicians on the staff) available to predict the volume of outpatient clinic use it could accurately anticipate for an optical imaging service. Because of this, a ____________________ budget would not be possible for the first year of service.
Q:
One of the financial statements most useful to the director of Health Information Management is the ______________________________________________________.
Q:
To analyze what has actually been expended compared with that which was budgeted can be determined from the ____________________ report.
Q:
The amount of money received from a payer less the actual cost to provide the service represents the ____________________ gained by the transaction.
Q:
The monthly fee for leasing the van in the health information imaging service is considered a fixed cost. a.
Yes b.
No
Q:
The Health Information Services department, with its added health information imaging service, will still be considered a nonpatient-revenue-generating department. a.
Yes b.
No
Q:
Because the revenue from the approved imaging system will be significant, the Health Information Services department will now be considered an indirect cost department. a.
Yes b.
No
Q:
In the process of finalizing the operating budget, the health information manager was obligated to define the consequences if one or more of the department's programs had to be terminated (i.e., contracted transcription services, cancer registry, etc.). This implies the hospital is using which budget method?
a. Flexible budget method
b. Rolling budget method
c. Zero-based budget method
d. None of the above
Q:
The _____ officer (of the four employed by the institution) will most likely be responsible for obtaining the financing for the new imaging system and service, if it is necessary, including developing the investment report showing this new service.
a. Chief financial
b. Managerial finance
c. Patient account
d. None of the above
Q:
In the process of calculating the net cash outflow, equipment depreciation was considered an outflow. Do you agree? a.
Yes b.
No
Q:
The finance officer will calculate the _____ for the proposed imaging system to determine the cash flows for the project.
a. Ratio analysis
b. Operating margin ratio
c. Net operating revenue
d. Net present value
Q:
In addition, the Capital Expenditure Committee will examine the _______ to determine objectively whether the benefits to be received from the optical imaging system are the best alternative use of the organization's investment funds.
a. Charge master
b. Opportunity cost
c. Ratio analysis
d. Both b and c
Q:
Before the Capital Evaluation Committee authorizes the acquisition of the proposed imaging system, it will also examine other capital evaluation measures. All the following are capital evaluation measures except
a. Accounting rate of return.
b. Operating margin ratio.
c. Net present value.
d. Payback year.
Q:
Because the proposed imaging system is competing with other departmental proposals for authorized funding, what capital evaluation measure, in particular, is expected to be analyzed before the hospital makes an objective decision?
a. Net present value
b. Payback method
c. Account rate of return
d. Both b and c
Q:
The process of allocating the costs of indirect departments to direct departments can be accomplished by which method?
a. Step-down method
b. Double-distribution method
c. Simultaneous-equations method
d. All of the above
Q:
A discounting factor is required for determining which measure?
a. Payback period
b. Accounting rate of return
c. Net present value
d. Operating margin ratio