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What are the advantages of having sufficient working capital on hand? Question 1 options: 1) Organizations have sufficient resources to repay loans and are therefore creditworthy. 2) None of the above 3) Both a and b 4) Organizations are able to pay their employees and vendors on time, thereby maintaining a positive relationship. Question 2 (0.5 points) Department managers use _________ to determine volumes. Question 2 options: 1) production units 2) historical data 3) charity care policies 4) RVUs Question 3 (0.5 points) Which of the following laws was enacted to slow the growth of healthcare capital costs? Question 3 options: 1) Tax Reform Act 2) Social Security Amendments of 1983 3) Balanced Budget Act of 1997 4) Certificate-of-need legislation Question 4 (0.5 points) An organization incurs delinquency costs Question 4 options: 1) when patients do not pay on time. 2) for billing and collecting during the organization's average payment cycle. 3) when it extends credit to patients after providing services. 4) when it has excess funds in accounts receivable. Question 5 (0.5 points) Materials management can be classified in which two ways? Question 5 options: 1) Equipment and materials 2) Patient care and office materials 3) Administration and clinical 4) Administration and patient care Question 6 (0.5 points) The strategic financial plan is the link between the __________ and the __________. Question 6 options: 1) strategic plan; capital budgeting plan 2) operational plan; budget 3) strategic plan; operational plan 4) budget; capital budgeting plan Question 7 (0.5 points) Many young Americans have gained access to healthcare by using the Affordable Care Act provision that allows them to stay on their parents' plan until what age? Question 7 options: 1) 28 2) 29 3) 26 4) 27 Question 8 (0.5 points) The strategic plan should be reviewed Question 8 options: 1) every three to five years. 2) semiannually. 3) every two years. 4) on an annual basis. Question 9 (0.5 points) How did the Balanced Budget Act of 1997 attempt to increase access? Question 9 options: 1) It protected insured people from losing coverage due to a job change. 2) It gave states the option of mandating Medicaid beneficiaries to enroll in a managed care plan. 3) It required all Medicare beneficiaries to purchase prescription drug coverage. 4) It required employers to offer a federally qualified HMO as a health insurance option. Question 10 (0.5 points) Permanent working capital is Question 10 options: 1) the minimum amount of working capital always on hand. 2) working capital that is never used in hospital operations. 3) working capital that has a useful life equivalent to that of the organization. 4) the maximum amount of working capital always on hand. Question 11 (0.5 points) The Fair Credit Reporting Act Question 11 options: 1) applies only if an organization contracts with a collection agency. 2) establishes disclosure rules for sales involving consumer credit. 3) governs the use of credit reports. 4) establishes provisions for reporting individuals' credit in good faith. Question 12 (0.5 points) Which of the following are characteristics of management by objectives? Question 12 options: 1) All of the above 2) Subordinates propose objectives to management. 3) The manager provides subordinates with a general overview of the work to be accomplished in the following year. 4) Proposed objectives are negotiated until a decision is made. Question 13 (0.5 points) Liquidity refers to Question 13 options: 1) how quickly a liability can be paid off. 2) the rate at which a healthcare organization disburses its cash. 3) the rate at which a hospital sells its current assets. 4) how quickly an asset can be converted into cash. Question 14 (0.5 points) Financing accounts receivable involves Question 14 options: 1) converting outstanding accounts receivable into cash for long-term investments. 2) converting outstanding accounts receivable into cash for short-term obligations. 3) using excess accounts receivable funds for investment in capital equipment. 4) using excess accounts receivable funds for community benefit. Question 15 (0.5 points) Inventory management is the Question 15 options: 1) control of supplies coming into the organization and supplies used. 2) management and control of services, inventory, and equipment. 3) management and control of inventory. 4) control of materials purchased. Question 16 (0.5 points) What are cash flows? Question 16 options: 1) The difference between the amount of money used internally and the amount of money used for external endeavors 2) The difference between liabilities paid in cash and liabilities financed with equity 3) None of the above 4) The difference between cash receipts and cash disbursements Question 17 (0.5 points) The Health Insurance Portability and Accountability Act included which of the following provisions? Question 17 options: 1) Medicare fraud and abuse charges 2) Medical savings accounts 3) All of the above 4) Standardized electronic billing and claims Question 18 (0.5 points) Which federal law governing accounts receivable applies only to third-party payers? Question 18 options: 1) Both a and b 2) Fair Credit Reporting Act 3) Truth in Lending Act 4) Fair Debt Collection Practices Act Question 19 (0.5 points) What is the first step in the budgeting process? Question 19 options: 1) Project contractual allowances. 2) Determine revenues. 3) Determine expenses. 4) Project volumes. Question 20 (0.5 points) Which of the following statements describes cost-led pricing? Question 20 options: 1) Revenue budgets are set before expense budgets. 2) Revenue budgets need to be determined before capital budgeting can occur. 3) Expense budgets are set before revenue budgets. 4) Expense budgets need to be determined before capital budgeting can occur. Question 21 (0.5 points) What is the primary source of data required for reimbursement from third parties? Question 21 options: 1) None of the above 2) The medical claim form 3) The fee schedule 4) The medical record Question 22 (0.5 points) The Truth in Lending Act Question 22 options: 1) establishes provisions for lending funds in good faith to organizations. 2) establishes disclosure rules for sales involving consumer credit. 3) applies only if an organization contracts with a collection agency. 4) governs the use of credit reports. Question 23 (0.5 points) Examples of current assets include Question 23 options: 1) salaries and wages. 2) inventories. 3) Both a and b 4) prepaid expenses. Question 24 (0.5 points) An organization incurs carrying costs Question 24 options: 1) when patients do not pay on time. 2) for billing and collecting during the organization's average payment cycle. 3) when it has excess funds in accounts receivable. 4) when it extends credit to patients after providing services. Question 25 (0.5 points) What is the most important component of budget development? Question 25 options: 1) Variable expenses 2) Contractual allowances 3) Projected volumes 4) Revenues Question 26 (0.5 points) What is the first step in the planning process? Question 26 options: 1) Assess the internal and external environments. 2) Validate the mission and strategic interpretations. 3) Establish strategic thrusts. 4) Formulate the vision. Question 27 (0.5 points) Where do costs related to inventory appear on an organization's financial statements? Question 27 options: 1) Expenses on the statement of revenues and expenses 2) Current asset on the balance sheet 3) Both a and b 4) None of the above Question 28 (0.5 points) Effective accounting systems will Question 28 options: 1) identify the time period in which transactions occur. 2) value transactions in an appropriate manner. 3) All of the above 4) identify and record all valid accounting transactions on a timely basis. Question 29 (0.5 points) What is capital budgeting? Question 29 options: 1) The process used to convert the operational plan into budgets for capital expenditures 2) The process used to budget for anticipated capital expenditures for the next fiscal year 3) The process used to budget for capital expenditures three to five years out 4) The process used to convert the strategic plan into budgets for capital expenditures Question 30 (0.5 points) What is the most significant factor that affects an organization's ability to access capital in the market? Question 30 options: 1) The amount of debt an organization has 2) An organization's debt-to-capitalization ratio 3) An organization's investment practices 4) An organization's creditworthiness Question 31 (0.5 points) The healthcare reform bill proposed by President Clinton in 1992 was a(n) __________-based plan. Question 31 options: 1) managed competition 2) government 3) single payer 4) employer Question 32 (0.5 points) Health Insurance Marketplaces make insurance more affordable to consumers by both creating a competitive market and by subsidizing insurance for about ___ percent of consumers who buy insurance on the marketplace. Question 32 options: 1) 85 2) 95 3) 90 4) 80 Question 33 (0.5 points) What are the four stages of corporate planning? Question 33 options: 1) Budgeting, capital budgeting, incremental planning, operational planning 2) Capital budgeting, zero-based planning, operational planning, strategic planning 3) Operational planning, zero-based planning, incremental planning, budgeting 4) Strategic planning, operational planning, budgeting, capital budgeting Question 34 (0.5 points) How can a department manager obtain revenue and expense information to project volumes for new capital equipment? Question 34 options: 1) Through medical record reviews 2) All of the above 3) Through questionnaires to potential users 4) Through accounts payable Question 35 (0.5 points) As of 2020, the Affordable Care Act had increased access to health insurance to about ________ people. Question 35 options: 1) 26 million 2) 22 million 3) 24 million 4) 20 million Question 36 (0.5 points) What is the purpose of a SWOT analysis during an internal environment investigation? Question 36 options: 1) To identify the organization's position in the market relative to its competitors 2) To identify the organization's strengths and weaknesses 3) To identify the organization's opportunities and threats 4) To identify proactive strategies the organization may take in response to national trends Question 37 (0.5 points) A coding compliance plan should ensure Question 37 options: 1) that the health information management department is conducting periodic training for all coders. 2) that an organization is using the right coding resources. 3) All of the above 4) continuous development and revision of coding policies. Question 38 (0.5 points) Strategic planning looks ______ years into the future; operational planning looks ______ year(s) into the future. Question 38 options: 1) three to five; one to two 2) three to ten; one 3) three to five; one to three 4) three to ten; three Question 39 (0.5 points) The COVID-19 pandemic had a chilling effect on the acquisition of capital in 2020, as evidenced by Question 39 options: 1) hospital systems delaying capital projects. 2) hospital systems putting bond issues on hold. 3) bond rating downgrades outnumbering bond rating upgrades. 4) All of the above Question 40 (0.5 points) Which of the following factors sets healthcare apart from other industries regarding accounts receivable? Question 40 options: 1) Both a and b 2) The cost of services 3) The utilization of services 4) The method of payment for services Question 41 (0.5 points) Which of the following is an advantage of having an internal control system? Question 41 options: 1) It gives employees direction through policies and procedures. 2) It reduces the risk of losing assets through errors. 3) None of the above 4) Both a and b Question 42 (0.5 points) Which ratio is an important indicator of operating leverage? Question 42 options: 1) Current ratio 2) Average age of plant ratio 3) Debt-to-capitalization ratio 4) Capital expense ratio Question 43 (0.5 points) Which of the following characterizes a second-generation clinical integration system, as recommended by Nathan Kaufman? Question 43 options: 1) All of the above 2) Primary-care medical homes 3) Disease management programs 4) Electronic health records with point-of-care protocols Question 44 (0.5 points) Planning consists of establishing Question 44 options: 1) All of the above 2) rules. 3) methods. 4) procedures. Question 45 (0.5 points) Which of the following ratios is an indicator of the age of an organization's fixed assets? Question 45 options: 1) Debt-to-capitalization ratio 2) Current ratio 3) Average age of plant ratio 4) Capital expense ratio Question 46 (0.5 points) A group of independent organizations working together to deliver products or services to the end user, or patient, is called Question 46 options: 1) just-in-time purchasing. 2) cooperative purchasing. 3) value-based purchasing. 4) a supply chain. Question 47 (0.5 points) In the United States, what age group is most uninsured? Question 47 options: 1) 65+ 2) Under 19 3) 4564 4) 1925 Question 48 (0.5 points) What does the term "515, net 30" mean? Question 48 options: 1) An organization can receive a 5 percent discount if it pays within 15 days. 2) An organization can receive a 15 percent discount if it pays within 5 days. 3) If an organization pays before day 30, it can receive a discount of 5 to 15 percent. 4) An organization can receive a 30 percent discount if it pays between days 5 and 15. Question 49 (0.5 points) The inventory turnover ratio measures Question 49 options: 1) inventory expenses in relation to operating revenue. 2) costs incurred from ordering supplies in relation to total inventory expense. 3) the number of times inventory is turned in relation to operating revenue. 4) how quickly an organization goes through routine supplies. Question 50 (0.5 points) Working capital is defined as the Question 50 options: 1) total amount of equipment dedicated to providing patient care. 2) total amount of functioning equipment in a healthcare organization. 3) sum of a healthcare organization's investment in current assets. 4) sum of a healthcare organization's investment in outside endeavors.

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