1|Page
Fundamentals of Healthcare Finance – Test Bank
(3rd Edition) | Gapenski & Reiter | ISBN
9781567939781 |2026
Which of the following statements about finance, accounting, and
financial management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help
managers make better decisions.
c. Financial management involves the measurement, in financial terms,
of operational events that affect the resources and financing of an
organization.
d. The primary role of finance is to plan for, acquire, and use resources
to maximize the efficiency (and value) of the enterprise.
This is a 100% true statement.
e. Financial management is of no value in decision making.
The correct answer is: The primary role of finance is to plan for, acquire,
and use resources to maximize the efficiency (and value) of the
enterprise. - ANSWER -d. The primary role of finance is to plan for,
acquire, and use resources to maximize the efficiency (and value) of the
enterprise.
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Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management - ANSWER -e. facilities management
The four Cs (character, capability, charisma, and courtesy) summarize
the attributes needed to be a good financial manager. (T/F) - ANSWER -
False
The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a
multitude of activities such as cost containment, payer negotiations,
and joint venture activities. (T/F) - ANSWER -True
Which of the following statements about the finance department at
large healthcare organizations is most correct?
a. The department is headed by the chief financial officer (CFO)
(sometimes called the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
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d. The comptroller and treasurer often have managers under them
responsible for specific functions such as patient accounts management
and cash management.
e. All of the above statements are correct. - ANSWER -e. All of the
above statements are correct.
Which of the following statements about hospitals is most correct?
Select one:
a. Patients at general acute care hospitals typically have long patient
stays, often 30 or more days.
b. The number of specialty hospitals has declined over the last three
decades.
c. The optimal size for a hospital is roughly 50 beds.
d. The majority of hospitals are public or not for profit (as opposed to
investor owned).
e. Most physicians involved with hospital services are hospital
employees. - ANSWER -d. The majority of hospitals are public or not for
profit (as opposed to investor owned).
Which of the following statements about healthcare providers is
incorrect?
Select one:
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a. Traditional outpatient settings include clinics, medical practices,
hospital outpatient departments, and emergency rooms.
b. Long-term care includes both healthcare and personal care services.
c. There are many more hospitals than there are nursing homes, but
nursing homes tend to have a greater number of beds.
d. One of the hypothesized benefits of integrated delivery systems is
patient capture.
e. Patients with chronic illnesses are best treated by a single case
manager regardless of the - ANSWER -c. There are many more hospitals
than there are nursing homes, but nursing homes tend to have a
greater number of beds.
Many studies have demonstrated that integrated delivery systems are
able to provide higher-quality care at lower cost than can stand-alone
specialized provider organizations. (T/F) - ANSWER -False
In the U.S., the highest proportion of healthcare expenditures is for
_____________.
Select one:
a. Prescription drugs
b. Nursing home care
c. Hospital care
d. Dental care
e. Home healthcare - ANSWER -c. Hospital care
Fundamentals of Healthcare Finance – Test Bank
(3rd Edition) | Gapenski & Reiter | ISBN
9781567939781 |2026
Which of the following statements about finance, accounting, and
financial management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help
managers make better decisions.
c. Financial management involves the measurement, in financial terms,
of operational events that affect the resources and financing of an
organization.
d. The primary role of finance is to plan for, acquire, and use resources
to maximize the efficiency (and value) of the enterprise.
This is a 100% true statement.
e. Financial management is of no value in decision making.
The correct answer is: The primary role of finance is to plan for, acquire,
and use resources to maximize the efficiency (and value) of the
enterprise. - ANSWER -d. The primary role of finance is to plan for,
acquire, and use resources to maximize the efficiency (and value) of the
enterprise.
,2|Page
Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management - ANSWER -e. facilities management
The four Cs (character, capability, charisma, and courtesy) summarize
the attributes needed to be a good financial manager. (T/F) - ANSWER -
False
The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a
multitude of activities such as cost containment, payer negotiations,
and joint venture activities. (T/F) - ANSWER -True
Which of the following statements about the finance department at
large healthcare organizations is most correct?
a. The department is headed by the chief financial officer (CFO)
(sometimes called the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
,3|Page
d. The comptroller and treasurer often have managers under them
responsible for specific functions such as patient accounts management
and cash management.
e. All of the above statements are correct. - ANSWER -e. All of the
above statements are correct.
Which of the following statements about hospitals is most correct?
Select one:
a. Patients at general acute care hospitals typically have long patient
stays, often 30 or more days.
b. The number of specialty hospitals has declined over the last three
decades.
c. The optimal size for a hospital is roughly 50 beds.
d. The majority of hospitals are public or not for profit (as opposed to
investor owned).
e. Most physicians involved with hospital services are hospital
employees. - ANSWER -d. The majority of hospitals are public or not for
profit (as opposed to investor owned).
Which of the following statements about healthcare providers is
incorrect?
Select one:
, 4|Page
a. Traditional outpatient settings include clinics, medical practices,
hospital outpatient departments, and emergency rooms.
b. Long-term care includes both healthcare and personal care services.
c. There are many more hospitals than there are nursing homes, but
nursing homes tend to have a greater number of beds.
d. One of the hypothesized benefits of integrated delivery systems is
patient capture.
e. Patients with chronic illnesses are best treated by a single case
manager regardless of the - ANSWER -c. There are many more hospitals
than there are nursing homes, but nursing homes tend to have a
greater number of beds.
Many studies have demonstrated that integrated delivery systems are
able to provide higher-quality care at lower cost than can stand-alone
specialized provider organizations. (T/F) - ANSWER -False
In the U.S., the highest proportion of healthcare expenditures is for
_____________.
Select one:
a. Prescription drugs
b. Nursing home care
c. Hospital care
d. Dental care
e. Home healthcare - ANSWER -c. Hospital care
