Bha 4053, financial management in health care administration (part

 BHA 4053, Financial Management in Health Care Administration (Part II)

 

Question 1

A _________ presents summarized revenues and expenses of an organization – resulting in a profit or loss – for a given period in time.

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balance sheet

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statement of operations

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statement of cash flows

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note to the financial statement

Question 2

In the non-profit industry, the statement of cash flow is divided into cash flow from operations, investing activity, and _________.

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capital expenditures.

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net investments.

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long term liabilities.

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financing activity.

Question 3

The primary purpose of the _________ is to roll forward the net assets from the end of the prior period to the current period.

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balance sheet

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statement of operations

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statement of changes in unrestricted net assets

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notes to the financial statement

Question 4

The concept of _________ requires that accounting records be constructed in such a manner as to reflect two aspects of each transaction: the change in assets and the change in the source of financing (liabilities).

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transactions

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matching

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accrual

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double entry

Question 5

(Cash and cash equivalents + Board-designated funds for capital) / (Estimated future peak debt service)

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operating balance

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operating margin

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current ratio (x)

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cushion ratio (x)

Question 6

Which of the following is NOT one of the six most sensitive accounts most likely to receive audit adjustments in the financial statements?

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contractual adjustments

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accounts payable

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accounts receivable

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bad-debt expense

Question 7

A _________ presents a snapshot of the financial condition of the health care organization at a single point in time.

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balance sheet

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statement of operations

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statement of cash flows

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note to the financial statement

Question 8

_________ is the revenue earned on investment of excess funds made by the organization.

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fringe income

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interest income

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excess income

Question 9

_________ describes an organization’s ability to use current assets to pay off current liabilities.

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Current ratio

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Cushion ratio

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Cash in hand

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Credibility ratio

Question 10

The concept of _________ requires that all financial transactions are recorded at “cost,” that is, the price paid to acquire any item or good.

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transactions

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entity

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matching

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cost valuation

Question 11

Explain how it is possible that there could be a conflict between the organization’s administration and its medical staff.

Question 12

Using the balance sheet and statement of operations in Chapter 2, calculate the three bond repayment ratios, and use it to determine the financial condition of the health care organization.

Question 13

 

If a hospital is not required to prepare a three year strategic plan, what impact would it have on financial and operating outcomes?