Exam 15: Financial Functions in Finance

Business risk includes all of the following EXCEPT:

Which of the following reduce cash?

Which of the following statements is true?

In which reimbursement system will increasing prices increase revenue?

Purchasing equipment reduces cash balances.

The risk associated with inefficient use of inputs or over-provision of services is

The three major sections of the cash flow statement are

In the cash flow statement under operating activities, which of the following is not a source of cash?

Which reimbursement system places cost, utilization, and actuarial risk on the insurer?

Business risk is the risk inherent in an organization's operations that may reduce profit, including changing consumer tastes, increased competition, and increased input prices.

Which reimbursement system shifts actuarial risk to healthcare providers?

Revenue cycle, the function that adds the most days to the payment processing and collection cycle, is

Issuing debt reduces cash balances.

Actuarial (occurrence) risk arises from the

The purpose of financial reporting is

Risk can be handled in multiple ways, when risk is accepted and minimized by re-insurance it is called

Business risk is the risk associated with meeting contracted interest and principal payments on debt.

If the cost of debt is 5% and equity is 10% and 40% of assets are financed by debt and 60% are financed by equity, the cost of capital is

The cash budget reflects

Capital structure is