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

Accepted Answer

The Federal Accounting Standards Advisory Board (FASAB) serves the public interest by improving federal financial reporting through the issuance of federal financial accounting standards. This is aimed at providing a clear understanding of the federal government's financial position to the public.

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.

Accepted Answer

GAAP (Generally Accepted Accounting Principles) establishes the measurement of economic activity, timing for measurements and recordings, disclosures, and the preparation and presentation of financial statements.

Question 3

According to GAAP, there are two categories of accounting principles: recognition and _________________.
A) disclosure
B) preparation
C) auditing
D) budgeting

Accepted Answer

According to GAAP (Generally Accepted Accounting Principles), the two categories of accounting principles are recognition and disclosure. Recognition involves the criteria for recording transactions and events in the financial statements, while disclosure involves providing necessary information to users of financial statements through notes and supplementary information.

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

Accepted Answer

Disclosure supports the recognition principles by explaining assumptions that are part of the numeric information in financial reports, providing additional context and clarity to readers.

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.

Accepted Answer

Stocks, bonds, and other types of securities can all pose a risk for losing value, as their returns are not guaranteed by the federal government unlike certain bank deposits.

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

Accepted Answer

The SEC (Securities and Exchange Commission) is responsible for interpreting and enforcing federal securities laws, among other duties. This includes issuing new rules and amending existing ones, inspecting securities firms, and coordinating with various regulatory bodies.

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.

Accepted Answer

The objective of effective financial reporting is to provide information in a manner that is both timely and efficient, as this helps in making informed decisions regarding the allocation of resources for the organization.

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

Accepted Answer

The accrual accounting method records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This provides a more accurate picture of a company's financial health and future cash flows than the cash accounting method, which only records transactions when cash changes hands.

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

Accepted Answer

Faithful representation in financial statements means that the financial information accurately reflects the financial position, performance, and changes in financial position of an organization. This concept ensures that the financial statements are a true and fair representation of the organization's financial status, without bias or error, thereby demonstrating the important financial relationships within the organization.

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

Accepted Answer

Neutrality in accounting means presenting information in an unbiased manner, without attempting to influence decision-making or favor any particular group. This ensures that the information is reliable and can be used confidently for decision-making purposes.

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.

Accepted Answer

A financial report or statement of financial position, such as a balance sheet, provides information about an organization's liabilities, owner's equity, and assets.

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.

Accepted Answer

When two or more people come together to form an organization with the aim of making a profit, it is called a partnership. This structure involves sharing the responsibilities, profits, and losses of the business.

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.

Accepted Answer

Not-for-profit organizations, including many hospitals, operate on a model where their assets and earnings are held in trust for the community or specific purposes rather than being owned by private individuals or shareholders. This status allows them to enjoy certain tax exemptions and reflects their primary mission to serve the public interest rather than to generate profit for owners or investors.

Question 14

Typically there are ______ vital components that comprise the financial transactions.
A) one
B) three
C) five
D) six

Accepted Answer

The three vital components that comprise financial transactions are the transaction amount, the date of the transaction, and a brief description of the transaction.

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

Accepted Answer

Clinical documentation is designed to track a patient's clinical status and care history, showing interactions with healthcare professionals, services delivered, and supporting informed decision-making.

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

Accepted Answer

The charge description master is related to billing and financial transactions, which falls under the responsibility of Patient Accounts.

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

Accepted Answer

Health Information Management (HIM) departments are typically responsible for the coding of inpatient medical records, including both hard and soft coding. This involves the accurate classification of diagnoses and procedures documented in the patient's medical record, which is crucial for billing, reporting, and analytics purposes.

Question 18

The idea of _____________ is best suited at the individual department level.
A) cost control
B) planning
C) reimbursement
D) forecasting

Accepted Answer

Cost control is best suited at the individual department level because it allows departments to manage their expenses directly and ensure they are within budget, which is essential for the overall financial health of an organization.

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

Accepted Answer

Forecasting is the process that goes hand in hand with planning, as it involves predicting future trends based on historical data to inform decision-making.

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.

Accepted Answer

The SEC (Securities and Exchange Commission) has the authority to bring civil enforcement actions against corporations and individuals who violate securities laws, ensuring compliance and protecting investors.

Quiz 1: Introduction to Healthcare Finance

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

_________________ 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."

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

_______________ 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.

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

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.

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.

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.

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

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

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

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

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

_______________________ 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.

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.

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

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

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

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