Question 1

Budgets must be attainable, reasonable and realistic. Accurate expense and revenue forecasting facilitates:

Accepted Answer

A) Attainable budgets without variance. 
B) A reasonable approach to the mission and goals of the facility. 
C) Realistic approaches to effective cost containment. 
D) Attainable strategic goals for the organization's strategic plan. 
A) Attainable budgets without variance. 
B) A reasonable approach to the mission and goals of the facility. 
C) Realistic approaches to effective cost containment. 
D) Attainable strategic goals for the organization's strategic plan. A

Question 2

Which of the following best defines productivity?

Accepted Answer

A) Productivity is the output per unit of input. 
B) Productivity is the input needed per unit of output. 
C) Productivity is revenue generated per unit of output. 
D) Productivity is the liabilities incurred per unit of input. 
A) Productivity is the output per unit of input. 
B) Productivity is the input needed per unit of output. 
C) Productivity is revenue generated per unit of output. 
D) Productivity is the liabilities incurred per unit of input. A

Question 3

The Children's Health Insurance Program is:

Accepted Answer

A) Legislated by and administered by the federal government. 
B) Legislated by and administered by the individual states. 
C) Legislated by the federal government and administered by the states. 
D) Legislated by the states and administered by the federal government. 
A) Legislated by and administered by the federal government. 
B) Legislated by and administered by the individual states. 
C) Legislated by the federal government and administered by the states. 
D) Legislated by the states and administered by the federal government. C

Question 4

You have just begun the role of the Director of Emergency Services in a new Los Angeles community hospital. How can you best project, or forecast, expenses for this department after having 5 years of experience in a similar role located in Tampa, Florida?

Accepted Answer

A) Systematically collect expense data for similar departments of similar size in the Los Angeles area. 
B) Use the expense data that you have collected in Tampa, Florida as a baseline. 
C) Consult with the CFO and ask for their recommendation because you do not have any data. 
D) Understand that a forecast is not possible because historical data is not available. 
A) Systematically collect expense data for similar departments of similar size in the Los Angeles area. 
B) Use the expense data that you have collected in Tampa, Florida as a baseline. 
C) Consult with the CFO and ask for their recommendation because you do not have any data. 
D) Understand that a forecast is not possible because historical data is not available.

Question 5

Medicare reimbursement is a type of what type of reimbursement?

Accepted Answer

A) Retrospective 
B) Prospective 
C) Capitation 
D) MDS 
A) Retrospective 
B) Prospective 
C) Capitation 
D) MDS

Question 6

The established standards and guidelines used by the Centers for Medicare and Medicaid Services (CMS) are referred to as:

Accepted Answer

A) Standards of Care. 
B) JCAHO standards. 
C) Conditions of Participation. 
D) Standards of Practice. 
A) Standards of Care. 
B) JCAHO standards. 
C) Conditions of Participation. 
D) Standards of Practice.

Question 7

Medigap is best described as:

Accepted Answer

A) A state approved supplemental health insurance policy that is paid for by individuals. 
B) A state approved supplemental health insurance policy that is paid for by Medicaid. 
C) A federally approved supplemental health insurance policy that is paid for by individuals. 
D) A federally approved supplemental health insurance policy that is paid for by Medicare. 
A) A state approved supplemental health insurance policy that is paid for by individuals. 
B) A state approved supplemental health insurance policy that is paid for by Medicaid. 
C) A federally approved supplemental health insurance policy that is paid for by individuals. 
D) A federally approved supplemental health insurance policy that is paid for by Medicare.

Question 8

Your department's total assets of $ 405,900, when compared to your department's total liabilities of $412,987, indicates that your department has an Asset/Liability Ratio of 0.98. How would you interpret this data?

Accepted Answer

A) The department has significant liquidity. 
B) The department has very little liquidity. 
C) The department has significant assets. 
D) The department has no assets. 
A) The department has significant liquidity. 
B) The department has very little liquidity. 
C) The department has significant assets. 
D) The department has no assets.

Question 9

Which of these costs is a part of a capital budget?

Accepted Answer

A) Staff salaries and benefits 
B) Grants and endowments 
C) Major medical equipment 
D) Routine patient care supplies 
A) Staff salaries and benefits 
B) Grants and endowments 
C) Major medical equipment 
D) Routine patient care supplies

Question 10

A major financial threat to the integrity of the Medicare and Medicaid programs is:

Accepted Answer

A) Fraud. 
B) The lack of accessibility to necessary health care. 
C) The paucity of rural health care services. 
D) The severe and projected nursing shortage. 
A) Fraud. 
B) The lack of accessibility to necessary health care. 
C) The paucity of rural health care services. 
D) The severe and projected nursing shortage.

Question 11

A major difference between Medicare and Medicaid is that Medicare:

Accepted Answer

A) Is only used for those 65 years of age and older. 
B) Is intended to facilitate health care access for the indigent. 
C) Is a regulatory and accreditation body and Medicaid is not. 
D) Covers seriously disabled people less than 65 years old. 
A) Is only used for those 65 years of age and older. 
B) Is intended to facilitate health care access for the indigent. 
C) Is a regulatory and accreditation body and Medicaid is not. 
D) Covers seriously disabled people less than 65 years old.

Question 12

Your hospital is in a rural area where the construction of a nuclear power plant has been recently completed. This plant will be fully operational in January of next year. What expenses can you reasonably forecast for next year?

Accepted Answer

A) Operating expenses relating to major decontamination equipment 
B) Capital expenses relating to personal protective equipment like gowns and gloves 
C) Increased staff relating to these increased community needs 
D) Pro-rated property tax increases because the plant will become operational 
A) Operating expenses relating to major decontamination equipment 
B) Capital expenses relating to personal protective equipment like gowns and gloves 
C) Increased staff relating to these increased community needs 
D) Pro-rated property tax increases because the plant will become operational

Question 13

Your department's Asset/Liability Ratio is 0.87. You belong to a community nursing administrators' group where you learn that the mean, or average, Asset/Liability Ratios for all departments like yours is 2.27. What are the implications of this comparative data?

Accepted Answer

A) You should dismiss this data because all departments are different, and you have to accept this fact without further exploration 
B) You should view this data as an indication that your department has more liquidity and better financial health than others 
C) You should further explore this data and determine what things you can do in order to decrease your Asset/Liability Ratio 
D) You should further explore this data and determine what things you can do in order to increase your Asset/Liability Ratio 
A) You should dismiss this data because all departments are different, and you have to accept this fact without further exploration 
B) You should view this data as an indication that your department has more liquidity and better financial health than others 
C) You should further explore this data and determine what things you can do in order to decrease your Asset/Liability Ratio 
D) You should further explore this data and determine what things you can do in order to increase your Asset/Liability Ratio

Question 14

Your department has received a grant from a philanthropic group. This grant money is formatted under which area of Revenue and Expenses financial report?

Accepted Answer

A) Mixed revenues 
B) Revenues 
C) Variable revenues 
D) Unexpected revenues 
A) Mixed revenues 
B) Revenues 
C) Variable revenues 
D) Unexpected revenues

Question 15

What is the primary purpose of expense forecasting?

Accepted Answer

A) To balance the profits and loss statement 
B) To predict and manage budget variances 
C) To ensure financial viability 
D) To adjust Medicare reimbursement rates 
A) To balance the profits and loss statement 
B) To predict and manage budget variances 
C) To ensure financial viability 
D) To adjust Medicare reimbursement rates

Question 16

You have been asked to prepare an annual Profit and Loss Statement for your department. What should you be aware of while preparing this financial management statement?

Accepted Answer

A) Profit and Loss Statements are less complex and less detailed than Balance Sheets. 
B) Variable costs, such as the cost of electricity, are not included in a Profit and Loss Statement. 
C) You can include current and prior year data on the Profit and Loss Statement. 
D) All entries on the Profit and Loss Statement must be in terms of dollars, not % of increase. 
A) Profit and Loss Statements are less complex and less detailed than Balance Sheets. 
B) Variable costs, such as the cost of electricity, are not included in a Profit and Loss Statement. 
C) You can include current and prior year data on the Profit and Loss Statement. 
D) All entries on the Profit and Loss Statement must be in terms of dollars, not % of increase.

Question 17

Which health care services are reimbursed according to resource utilization groups?

Accepted Answer

A) Home care 
B) Hospice care 
C) Acute care 
D) Long-term care 
A) Home care 
B) Hospice care 
C) Acute care 
D) Long-term care

Question 18

Which of the following is a major type of a budget?

Accepted Answer

A) A cash budget 
B) A deficit budget 
C) An expense and revenue budget 
D) A variable budget. 
A) A cash budget 
B) A deficit budget 
C) An expense and revenue budget 
D) A variable budget.

Question 19

Who should be actively engaged, and involved, in the entire budgetary process, including variance analysis?

Accepted Answer

A) Upper and middle management 
B) All members of the organization 
C) All department heads and upper management 
D) The CEO, the CFO and department heads 
A) Upper and middle management 
B) All members of the organization 
C) All department heads and upper management 
D) The CEO, the CFO and department heads

Question 20

Costs are classified as fixed, variable or mixed. Which is an example of a fixed cost?

Accepted Answer

A) Pro-rated utilities according to the square footage of the department or area 
B) Patient census and levels of acuity 
C) Medicare and Medicaid prospective reimbursement 
D) Staff nurse salaries negotiated with the union in a five year contract 
A) Pro-rated utilities according to the square footage of the department or area 
B) Patient census and levels of acuity 
C) Medicare and Medicaid prospective reimbursement 
D) Staff nurse salaries negotiated with the union in a five year contract

Budgets must be attainable, reasonable and realistic. Accurate expense and revenue forecasting facilitates:

Which of the following best defines productivity?

The Children's Health Insurance Program is:

You have just begun the role of the Director of Emergency Services in a new Los Angeles community hospital. How can you best project, or forecast, expenses for this department after having 5 years of experience in a similar role located in Tampa, Florida?

Medicare reimbursement is a type of what type of reimbursement?

The established standards and guidelines used by the Centers for Medicare and Medicaid Services (CMS) are referred to as:

Medigap is best described as:

Your department's total assets of $ 405,900, when compared to your department's total liabilities of $412,987, indicates that your department has an Asset/Liability Ratio of 0.98. How would you interpret this data?

Which of these costs is a part of a capital budget?

A major financial threat to the integrity of the Medicare and Medicaid programs is:

A major difference between Medicare and Medicaid is that Medicare:

Your hospital is in a rural area where the construction of a nuclear power plant has been recently completed. This plant will be fully operational in January of next year. What expenses can you reasonably forecast for next year?

Your department's Asset/Liability Ratio is 0.87. You belong to a community nursing administrators' group where you learn that the mean, or average, Asset/Liability Ratios for all departments like yours is 2.27. What are the implications of this comparative data?

Your department has received a grant from a philanthropic group. This grant money is formatted under which area of Revenue and Expenses financial report?

What is the primary purpose of expense forecasting?

You have been asked to prepare an annual Profit and Loss Statement for your department. What should you be aware of while preparing this financial management statement?

Which health care services are reimbursed according to resource utilization groups?

Which of the following is a major type of a budget?

Who should be actively engaged, and involved, in the entire budgetary process, including variance analysis?

Costs are classified as fixed, variable or mixed. Which is an example of a fixed cost?

Physical Care

Pyschosocial Care

Role of the Aide

Medical Assisting, NNAAP, and Pharmacological

Total Factor Productivity, Orientation, and Health Care

HR

Performance

Strategic Management

Financial Management

Midwifery

Filters

Exam 6: Finances

Budgets must be attainable, reasonable and realistic. Accurate expense and revenue forecasting facilitates:

Which of the following best defines productivity?

The Children's Health Insurance Program is:

You have just begun the role of the Director of Emergency Services in a new Los Angeles community hospital. How can you best project, or forecast, expenses for this department after having 5 years of experience in a similar role located in Tampa, Florida?

Medicare reimbursement is a type of what type of reimbursement?

The established standards and guidelines used by the Centers for Medicare and Medicaid Services (CMS) are referred to as:

Medigap is best described as:

Your department's total assets of $ 405,900, when compared to your department's total liabilities of $412,987, indicates that your department has an Asset/Liability Ratio of 0.98. How would you interpret this data?

Which of these costs is a part of a capital budget?

A major financial threat to the integrity of the Medicare and Medicaid programs is:

A major difference between Medicare and Medicaid is that Medicare:

Your hospital is in a rural area where the construction of a nuclear power plant has been recently completed. This plant will be fully operational in January of next year. What expenses can you reasonably forecast for next year?

Your department's Asset/Liability Ratio is 0.87. You belong to a community nursing administrators' group where you learn that the mean, or average, Asset/Liability Ratios for all departments like yours is 2.27. What are the implications of this comparative data?

Your department has received a grant from a philanthropic group. This grant money is formatted under which area of Revenue and Expenses financial report?

What is the primary purpose of expense forecasting?

You have been asked to prepare an annual Profit and Loss Statement for your department. What should you be aware of while preparing this financial management statement?

Which health care services are reimbursed according to resource utilization groups?

Which of the following is a major type of a budget?

Who should be actively engaged, and involved, in the entire budgetary process, including variance analysis?

Costs are classified as fixed, variable or mixed. Which is an example of a fixed cost?

Physical Care

Pyschosocial Care

Role of the Aide

Medical Assisting, NNAAP, and Pharmacological

Total Factor Productivity, Orientation, and Health Care

HR

Performance

Strategic Management

Financial Management

Midwifery

Filters