Financial Aspect of Health Care Administration

Good day.

I am have my Financial Aspect of Health Care Administration assignment attached. 

HSA 304 – Finacial Aspect of Health Care Administration

Exam # 1

1. What is an element of Financial Management? CH 1 (4 Points)

1. Planning
2. Strategic Management
3. Financial Consulting
4. Accrued Expenses

1. Which of the following is NOT a view within Financial CH 1 (4)

Management?

1. Process
2. Organizing
3. Financial
4. Clinical

1. Organization Charts are used to: CH 1 (4)

1. Emphasize external reporting
2. Illustrate the structure of the organization.
3. Deal with transactions that have already occurred.
4. Generate reports automatically

1. What is an example of a Non-Productive Hour? CH 9 (4 Points)

1. Regular Hours
2. Sick Hours
3. Overtime Hours
4. Time and a half Hours

1. What is a Variable Cost? CH 7 (3)

1. An activity level or volume of an operation.
2. Costs that are expressed as FTE’s.
3. Costs that have mixed elements
4. Costs that vary in direct proportion to changes in activity levels.

1. Which of the following is NOT Asset? CH 3 (3)

1. Accounts Receivable
2. Cash
3. Accounts Payable
4. Pledges Receivable
5. Which of the following is a Short Term Liability? CH 3 (3)

1. Mortgage Payable
2. Bonds Payable
3. Accounts Payable
4. Notes Payable

1. Which of the following is NOT a Service Line? CH 4 (3 Points)

1. Long Term Care
2. Hospitals
3. Home Care
4. Medicaid Program
5. Complete the Accounting equation. CH 3 (3)

Assets – Liabilities = ________________

1. Net Worth
2. Fund Balance
3. Owner’s Equity
4. All of the Above

1. Match the type of organization with its Net Worth form. CH 3 (3)

For Profit Sole Proprietor Capital Stock

For Profit Corporation Fund Balance

Not for Profit Owners Equity

1. What is one of the basic types of payment in Healthcare? CH 4 (3)

1. Fee for Service
2. Free Care
3. Contractual Allowance
4. None of the Above
5. What is a Payment Received before Service is delivered? CH 4 (3 Points)

1. Earned Revenue
2. Unearned Revenue
3. Pre-Determined Per Person payment
4. Rate Setting Difference
5. What is NOT a governmental source of healthcare revenue? CH 4 (3)

1. Medicare
2. Medicaid
3. Department of Veteran’s Affairs
4. Commercial Revenue

1. What is NOT a type of an HMO? CH 4 (3)

1. Staff model
2. Group Model
3. Revenue Model
4. Network Model

1. Is the following statement true or false? CH 6 (3)

“Direct costs are incurred for the sole benefit of a

particular operating unit”

A. True B. False

1. What is the percentage allocation of the Patient Revenue below: (7 Points)

CH 4

Amount %

Medicare $1,200,000 __________

Medicaid 1,700,000 __________

HMO 800,000 __________

Private 350,000 __________

Commercial 275,000 __________

Other 150,000 __________

Total $4,475,000 %

1. What are the two types of disbursements for services? CH 5 (4)
2. Payment when Expense is Incurred and Payment after

expense is incurred.

1. Cash payment and Credit Card payment.
2. Administrative payment and Support payment
3. General Services payment and Petty Cash payment

1. See attached worksheet. Calculate the Inventory Turnover (10 Points)

For the Nursing Department. CH 8

1. Which of the following is a fixed costs? CH 7 (3 Points)

1. Rent Expense
2. Food Costs
3. Medical Waste
4. Laundry Costs
5. Where does Inventory appear on a hospitals Balance Sheet? CH 8 (3)

1. Long Term Asset
2. Short Term Asset
3. Long Term Liability
4. New Worth
5. If Sales equal $250,000. Cost of Goods Sold equals $75,000, what is

the Gross Margin percentage? CH 7 (4)

1. What is NOT an inventory method? CH 8 (3)

1. LIFO
2. FIFO
3. Weighted Average
4. Book Value Method

1. Which of the following is a method of Depreciation. CH 8 (3 Points)

1. Sum of the Year’s Digits
2. Straight Line
3. Double Declining
4. Units of Service
5. All of the Above

1. See attached worksheet. Calculate annual depreciation, CH 8 (8)

accumulated depreciation and net book value of a new

MRI/Cat Scan machine with a cost of $210,000 using the

Straight Line method. Assume a useful life of 7 years with

no salvage value.

1. Does the calculation of an FTE include productive and non- CH 9 (3)

Productive hours?

A. True B. False

1. Which of the following is NOT a Subsidiary Journal? CH 2 (3)

1. Payroll Journal
2. Assets Journal
3. Cash Receipts Journal
4. Accounts Payable Journal
5. Cash Disbursements Journal

Please check and make sure you understand exactly what needs to be done before you accept the job.