Question 1

The use of financial reports on the __________ level will demonstrate the government's ability to show effective and efficient processes and social, political, and economic impact of various uses of federal resources.

Accepted Answer

Financial reports on the federal level are used to demonstrate the government's ability to show effective and efficient processes and the impact of the use of federal resources on social, political, and economic aspects.

Question 2

The SEC works closely with a number of institutions and agencies, such as:

Accepted Answer

The SEC (Securities and Exchange Commission) works closely with stock exchanges to regulate and ensure the integrity of the securities markets. The Federal Accounting Standards Advisory Board (FASAB) deals with accounting standards for federal entities, and local tax preparers are not directly related to the SEC's primary functions.

Question 3

__________ affects the organization's ability to meet obligations such as payroll, accounts payable, and loans along with paying dividends to the shareholders.

Accepted Answer

Cash flow affects an organization's ability to meet financial obligations like payroll, accounts payable, loans, and dividends because it represents the actual amount of money available for use.

Question 4

Organizations will be structured based on their __________, and two characteristics that define the type of organizations are for-profit organizations and not-for-profit organizations.

Accepted Answer

Organizations are structured based on various factors including their financing, leadership, and tax status. Both for-profit and not-for-profit organizations are defined and differentiated by these characteristics, among others.

Question 5

A __________ is a legal entity that is separate from the owners, pays its own taxes, and has its own legal rights and responsibilities.

Accepted Answer

A corporation is a legal entity distinct from its owners, capable of paying taxes, entering into contracts, and being held legally liable independently of its shareholders.

Question 6

In the __________ area, the management team reviews all transactions for the entire facility that impact the financials in the clinical and support areas.

Accepted Answer

In the Administration area, the management team oversees and reviews all transactions across the entire facility, including both clinical and support areas, to ensure they are properly managed and reflected in the financials. This comprehensive oversight is crucial for maintaining the financial health and operational efficiency of the facility.

Question 7

A(n) __________ budget is designed for expected activity in the upcoming year based on historical data; it will not change during the year even if the volume of business changes.

Accepted Answer

A fixed budget is set at the beginning of a period and does not change, regardless of changes in the volume of activity. It is based on the assumption of a certain level of activity and is designed to remain constant, even if actual levels of activity change.

Question 8

The __________ method of allocating costs will distribute the costs involved with overhead to the revenue-producing departments. The costs will be distributed to the individual revenue-generating departments based on a percentage of revenue or square footage.

Accepted Answer

The direct method allocates overhead costs directly to revenue-producing departments based on a specific allocation base, such as revenue percentage or square footage.

Question 9

A(n) __________ cost is incurred in the organization as it provides products or services to a customer, but the cost is not directly related to the manufacturing of goods or services provided by the organization.

Accepted Answer

Indirect costs are those costs that are incurred in the organization but are not directly traceable to a specific product or service. These can include expenses like utilities, rent, and administrative salaries, which are necessary for the operation of the business but do not directly contribute to the production of any specific good or service.

Question 10

The __________ is part of the accounting system where all the entries are recorded in chronological order, and they are posted to the individual accounts that the transaction is associated with in the company.

Accepted Answer

The general ledger is a comprehensive record of all financial transactions that occur within a company, organized by account. It is where transactions are recorded in chronological order and then posted to the specific accounts they affect, serving as the central repository for all accounting data.

Question 11

Beginning accounts receivable + __________ − collections = __________.

Accepted Answer

The correct formula for calculating ending accounts receivable is: Beginning accounts receivable + Sales - Collections = Ending accounts receivable. This formula helps businesses understand how much money they are yet to receive from their customers.

Question 12

A(n) __________ claim is any claim submitted using the HIPAA mandated transaction ASC X12N 837-Health Care Claim: Professional or the CMS-1500 paper claim form.

Accepted Answer

A professional claim is submitted using the HIPAA mandated transaction ASC X12N 837-Health Care Claim: Professional or the CMS-1500 paper claim form, specifically for services rendered by physicians and other healthcare providers.

Question 13

Suppliers of durable medical equipment, prosthetics, orthotics, and supplies, as well as parenteral and enteral nutrition (PEN), submit claims to:

Accepted Answer

Suppliers of durable medical equipment, prosthetics, orthotics, and supplies, as well as parenteral and enteral nutrition, submit their claims to Durable Medical Equipment Medicare Administrative Contractors (DME MACs). These contractors are specifically tasked with handling claims related to durable medical equipment and related supplies.

Question 14

If the provider, practitioner, or supplier expects payment for the items or services to be denied by Medicare, the provider, practitioner, or supplier must advise the beneficiary __________ the items or services are furnished that, in the opinion of the provider, practitioner, or supplier, the beneficiary will be personally and fully responsible for payment.

Accepted Answer

The provider, practitioner, or supplier must inform the beneficiary before the items or services are furnished that they will be personally and fully responsible for payment if Medicare is expected to deny payment. This ensures the beneficiary is aware of potential out-of-pocket costs ahead of time.

Question 15

To inform a Medicare beneficiary that Medicare certainly or probably won't pay for a product or service, the provider must issue an ABN to the beneficiary or the beneficiary's:

Accepted Answer

An Advance Beneficiary Notice (ABN) is a notice given to Medicare beneficiaries to convey that Medicare is not likely to provide coverage for a specific service or item. The ABN must be given to the beneficiary or their authorized representative to ensure they are aware they might be responsible for the payment.

Question 16

The second-level appeal is an appeal with a(n) __________ that must be started no later than 180 days from the date of receipt of the redetermination.

Accepted Answer

A second-level appeal is conducted by a Qualified Independent Contractor (QIC) and must be initiated within 180 days from the date of receipt of the redetermination.

Question 17

According to the Centers for Medicare and Medicaid Services (CMS), a worker must have ___________ to qualify for the health insurance portion of Medicare Part A.

Accepted Answer

A worker must have a specific number of quarters of coverage (QCs), typically 40, to qualify for the health insurance portion of Medicare Part A without having to pay premiums.

Question 18

Medicare covers beneficiaries who __________ and have elected to pay a premium for coverage.

Accepted Answer

Medicare covers individuals who are entitled to Social Security or Railroad Retirement benefits, as well as those who have End-Stage Renal Disease (ESRD) and have elected to pay a premium for coverage.

Question 19

For a Medicare beneficiary to have home health services initiated, a physician's order is needed to start care. Then, a registered nurse will generally be the one to open the case and make the initial visit. After this, a(n) __________ will be established that outlines the care needed for the patient.

Accepted Answer

A plan of care is established after the initial visit by a registered nurse, outlining the care needed for the patient.

Question 20

Which of the following items is considered a financial obligation that is supported by a contract, has a time frame for repayment, and can be associated with a large purchase or loan when an organization uses some of its assets as collateral?

Accepted Answer

Notes payable are financial obligations that are backed by a formal agreement or contract, specify a repayment schedule, and are often associated with significant purchases or loans where an organization's assets are used as collateral.

Quiz 17: Financial and Administrative Aspects of Healthcare Organizations