Deck 1: Introduction to Healthcare Finance

Question 1

The Federal Accounting Standards Advisory Board mission is that it serves the _______________ interest by improving federal financial reporting through issuing federal financial accounting standards.

A) private
B) federal government
C) public
D) business

Answer 1

C

Question 2

_________________ establishes "the measurement of economic activity, time when such measurements are to be made and recorded, disclosures surrounding this activity, and preparation and presentation of summarized economic information in the form of financial statements."

A) A financial statement
B) FASAB
C) GAAP
D) All of these are correct.
E) None of these is correct.

Answer 2

C

Question 3

According to GAAP, there are two categories of accounting principles: recognition and _________________.

A) disclosure
B) preparation
C) auditing
D) budgeting

Answer 3

A

Question 4

_______________ ultimately supports the recognition principles in that assumptions are explained that are part of the numeric information; these provide additional information to the person reading the financial reports.

A) Auditing
B) A financial statement
C) Disclosure
D) GAAP

Question 5

Deposits in a bank may be guaranteed by the federal government, however ______________________ can pose a risk for losing value.

A) stocks
B) bonds
C) other types of securities
D) All of these are correct.
E) None of these is correct.

Question 6

The responsibility of the SEC is to ____________ and ____________ federal securities laws, issue new and amend existing rules, oversee the inspection of securities firms, oversee private regulatory organizations, and coordinate regulations with federal, state, and foreign authorities.

A) interpret, enforce
B) initialize, revise
C) audit, edit
D) oversee, govern

Question 7

The objective of effective financial reporting is to provide information in a ____________ manner that will assist in making decisions regarding the allocation of resources for the organization.

A) timely
B) efficient
C) Both timely and efficient
D) None of these is correct.

Question 8

When an organization uses the ___________ accounting method, it will be a better indicator of future cash flows and overall performance than using current cash receipts and disbursements.

A) accrual
B) financial
C) cash
D) general

Question 9

_________________________ is where financial statements demonstrate the important financial relationships of the organization itself.

A) Relevance of information
B) Faithful representation
C) Complete representation
D) Usefulness for decision

Question 10

_________________________ is where accounting information is a tool to communicate without providing any influence that would sway a decision in a particular direction, or that would favor a particular interest group.

A) Relevance of information
B) Faithful representation
C) Neutrality
D) Usefulness for decision

Question 11

A financial report or statement of financial position can provide information about an organization's _____________________.

A) liabilities
B) owner's equity
C) assets
D) All of these are correct.
E) None of these is correct.

Question 12

When two or more people get together to form an organization, it is called a:

A) sole proprietorship.
B) partnership.
C) corporation.
D) not-for-profit.
E) for-profit.

Question 13

The status of _______________ organizations are held in trust, rather than owned; there are many hospitals that will fit into this tax status.

A) for-profit
B) not-for-profit
C) All of these are correct.
D) None of these are correct.

Question 14

Typically there are ______ vital components that comprise the financial transactions.

A) one
B) three
C) five
D) six

Question 15

_______________________ will show who was in contact with the patient, what services were delivered, and any other clinical information that can help in the decision-making process for the patient while in the facility.

A) Patient accounts
B) Clinical documentation
C) Health information management
D) Administration

Question 16

The overall success of this department is predicated on both the accuracy of the charge description master and the clinical staff who are recording the transactions.

A) Patient Accounts
B) Clinical Documentation
C) Health Information Management
D) Administration

Question 17

_________________________ is fully responsible for the soft coding of the inpatient medical records.

A) Patient Accounts
B) Clinical Documentation
C) Health Information Management
D) Administration

Question 18

The idea of _____________ is best suited at the individual department level.

A) cost control
B) planning
C) reimbursement
D) forecasting

Question 19

___________________ goes hand in hand with planning, as this too looks at future trends based on historical data.

A) Cost control
B) Planning
C) Reimbursement
D) Forecasting

Question 20

The SEC accomplishes effective oversight through their ability to enforce the laws through civil enforcement actions against corporations and individuals that violate these laws.

Question 21

Financial reporting is not a tool for providing information to decision makers that will influence and support the decision-making process.