1. The purpose of a not-for-profit healthcare facility is to
a. make a substantial profit.
*b. provide healthcare services to the community.
c. provide healthcare services specifically to the medically
indigent.
d. raise funding for research and technology.
2. What are the five management functions?
a. Planning, communicating, decision making, staffing,
controlling
b. Communicating, decision making, coordinating, staffing,
controlling
*c. Planning, organizing, staffing, controlling, directing
d. Organizing, staffing, decision making, communicating,
controlling
3. The purpose of healthcare financial management is to
*a. provide accounting and financial information that assists the
manager in achieving the organization’s purpose.
b. manage finances.
c. make a profit.
d. provide accounting and financial information to the board so
it can best view the financial position of the organization.
4. What is the highest level of education most chief financial officers
have completed?
a. Bachelor’s degree
*b. Master’s degree
c. Associate’s degree
d. Doctoral degree
5. Accounting is generally divided into what major areas?
a. Assets and liabilities
b. Cost accounting and financial accounting
c. Charge-based accounting and cost-based accounting
*d. Financial accounting and managerial accounting
6. The purpose of financial accounting is to provide
a. prospective accounting information to external users,
including stakeholders.
b. historic accounting information to internal users, including
managers.
*c. historic accounting information to external users, such as
stakeholders.
d. prospective accounting information to internal users,
including managers.
7. The purpose of managerial accounting is to provide
*a. current or prospective accounting information to internal
users, including managers.
b. historic accounting information to external users.
c. prospective accounting information to external users.
d. historic accounting information to internal users, including
managers.
8. Healthcare financial managers follow which of the following common
measures?
a. Infection rates
*b. Average length of stay
c. Days in accounts receivable
d. Emergency department census
9. Cost accounting is defined as the
a. study of the relationship between costs and charges.
b. preferred accounting method used by Medicare.
*c. study of costs, including methods for classifying,
allocating, and identifying costs.
d. study of cost changes and their effect on accounting methods.
10. Historically, the purpose of finance was to
*a. borrow and invest the funds necessary for the organization to
achieve its purpose.
b. analyze information provided by managerial accounting to
evaluate past decisions and make strong decisions in the future.
c. keep an organization competitive in the industry.
d. make a profit for the organization.
11. Today, the purpose of finance is to
a. keep the organization competitive in the industry.
*b. analyze information provided by managerial accounting to
evaluate past decisions and make sound decisions in the future.
c. borrow and invest the funds necessary for the organization to
achieve its purpose.
d. None of the above
12. The most important objective of healthcare financial management is
to
a. respond to regulations.
*b. generate income.
c. respond to third-party payers.
d. monitor physicians.
13. Direct measures of quality assume that
a. an organization cannot define and measure quality itself.
b. quality is directly linked to an organization’s reputation.
*c. an organization can define and measure quality itself.
d. quality is directly linked to care outcomes.
14. Direct measures of quality include
a. goal-based, reputational, value-added, and responsive
measures.
b. outcome, decision-making, value-added, and resource measures.
c. connoisseurship, decision-making, reputational, and outcome
measures.
*d. goal-based, connoisseurship, responsive, and decision-making
measures.
15. Indirect measures of quality assume that
a. an organization can measure and define quality itself.
b. quality is measured indirectly by an organization’s clinical
outcomes.
*c. an organization can define and measure the results of
quality.
d. measures of quality reside outside a healthcare organization.
16. Indirect measures of quality include
*a. resource, outcome, value-added, and reputational measures.
b. goal-based, connoisseurship, responsive, and decision-making
measures.
c. connoisseurship, outcome, value-added, and goal-based
measures.
d. outcome, reputational, responsive, and goal-based measures.
17. Who established the National Patient Safety Goals?
a. American Hospital Association
b. American Medical Association
c. Medicare
*d. The Joint Commission
18. Managers typically represent a __________ view of ethics, whereas
clinicians typically represent a _________ view of ethics.
a. deontological; utilitarian
*b. utilitarian; deontological
c. loose; strict
d. strict; loose
19. Healthcare expenditures as a percentage of the US gross domestic
product are about
a. 14 percent.
b. 16 percent.
*c. 18 percent.
d. 20 percent.
20. By type of service, the largest healthcare expenditure are
*a. hospitals.
b. physicians.
c. pharmaceuticals.
d. nursing homes.
21. By source of funds, the largest healthcare payer is
a. Medicare.
b. Medicaid.
*c. private health insurance.
d. out of pocket.
22. The three management connective processes are
a. planning, communicating, and decision making.
*b. communicating, coordinating, and decision making.
c. planning, organizing, and communicating.
d. organizing, decision making, and controlling.
23. Which of the following should be monitored by healthcare financial
managers?
a. Admissions
b. Average daily census
c. Average length of stay
*d. All of the above
24. The worst example of conflict of interest is
a. conflict between staff and manager.
b. conflict between the manager’s duties to the organization.
c. when managers use their positions of authority for personal
gains.
*d. Both b and c
25. Which of following is important to financial management as a direct
measure of quality?
*a. Decision making
b. Communication
c. Coordination
d. Planning
26. Which of the following elements will NOT profoundly affect the
financial situation of a healthcare organization?
a. Increase in the number of individuals with health insurance
b. Changing reimbursement structures
c. Explicit linking of reimbursement with quality measures
*d. Decrease in the number of individuals without insurance
27. Private health insurance, Medicare, and Medicaid account for more
than __ percent of all personal health consumption expenditures.
a. 48 percent
b. 58 percent
*c. 68 percent
d. 78 percent
28. In 2019, professional services including physicians, dentists, and
other professionals (but not hospitals) accounted for ________ of all
personal healthcare expenditures.
a. 17 percent
*b. 27 percent
c. 37 percent
d. 47 percent
29. The 2016 Johns Hopkins study claimed that as many as _______ people
die each year from medical errors.
a. 100,000
b. 150,000
c. 200,000
*d. 250,000