HSMA 4055 Final || 100% Verified Answers.
Which of the following techniques are used to help interpret operating metrics? correct answers
Trend analysis
Comparative analysis
Both A and B
Which of the following statements is not a limitation of ratio analysis? correct answers There are
an insufficient number of ratios available
Which of the following statements concerning net income is most correct? correct answers All of
the above are correct
Which of the following is not a finance activity? correct answers Facilities management
Which of the following statements about the trade-off theory of capital structure is most correct?
correct answers The trade-off theory tells us that businesses should use some debt financing, but
not too much.
Which of the following variances is a hospital manager most likely to be held accountable for?
correct answers Labor variance
Supplies variance
Both A and B
Which of the following is not part of a business's strategic plan? correct answers Capital budget
Which of the following statements about income statement expenses is most correct? correct
answers Supplies are expensed (shown) on the income statement when consumed (used to
provide patient services)
All lease expense is reported on the income statement
Both B and C are correct
Effective cost drivers should have which of the following characteristics? correct answers They
should be perceived as being fair
They should create an incentive for cost reduction
Both A and B are correct
Consider the following balance sheet:
Cash $70,000
Accounts payable $30,000
Accounts receivable 30,000
Long-term debt 20,000
, Inventories 50,000
Common stock 200,000
Net fixed assets 350,000
Retained earnings 250,000
Total assets $500,000
Total liabilities and equity $500,000
Assume that the business uses $10,000 of its cash to pay for supplies that were ordered on credit
terms and have already been received and booked (recorded on the balance sheet). Which of the
below statements reflects the resulting balance sheet change? correct answers The cash account
decreases by $10,000, and the accounts payable account decreases by $10,000.
Which of the following statements about common stock is incorrect? correct answers The claim
of shareholders on the cash flows of the firm is limited to the dividends that they receive—that
is, they have no claim on a business's residual earnings.
Consider the following balance sheet:
Cash $70,000
Accounts payable $30,000
Accounts receivable 30,000
Long-term debt 20,000
Inventories 50,000
Common stock 200,000
Net fixed assets 350,000
Retained earnings 250,000
Total assets $500,000
Total liabilities and equity $500,000
Assume that the business uses $30,000 of its cash to pay salaries. Which of the below statements
reflects the resulting balance sheet change? correct answers The cash account decreases by
$30,000, and the retained earnings account is reduced by $30,000.
Suppose that two hospitals are identical in all ways except that Hospital N is relatively new and
Hospital O is relatively old. Which of the following statements about a comparative financial
statement analysis is most correct? (Hint: Think about the differences in the amount of net fixed
assets (net plant and equipment) carried on the balance sheet and the amount of depreciation
expense reported on the income statement.) correct answers None of the abover statements are
correct
Which of the following statements about project classifications is most correct? correct answers
Projects are classified by purpose, such aws replacement projects
Projects are classified by size, such as those less than $1 million
Both A and B are correct
Which of the following statements about project life in capital budgeting analyses is most
correct? correct answers If the analysis extends over the project's expected life, a salvage value
cash flow is added to the timeline.
Which of the following techniques are used to help interpret operating metrics? correct answers
Trend analysis
Comparative analysis
Both A and B
Which of the following statements is not a limitation of ratio analysis? correct answers There are
an insufficient number of ratios available
Which of the following statements concerning net income is most correct? correct answers All of
the above are correct
Which of the following is not a finance activity? correct answers Facilities management
Which of the following statements about the trade-off theory of capital structure is most correct?
correct answers The trade-off theory tells us that businesses should use some debt financing, but
not too much.
Which of the following variances is a hospital manager most likely to be held accountable for?
correct answers Labor variance
Supplies variance
Both A and B
Which of the following is not part of a business's strategic plan? correct answers Capital budget
Which of the following statements about income statement expenses is most correct? correct
answers Supplies are expensed (shown) on the income statement when consumed (used to
provide patient services)
All lease expense is reported on the income statement
Both B and C are correct
Effective cost drivers should have which of the following characteristics? correct answers They
should be perceived as being fair
They should create an incentive for cost reduction
Both A and B are correct
Consider the following balance sheet:
Cash $70,000
Accounts payable $30,000
Accounts receivable 30,000
Long-term debt 20,000
, Inventories 50,000
Common stock 200,000
Net fixed assets 350,000
Retained earnings 250,000
Total assets $500,000
Total liabilities and equity $500,000
Assume that the business uses $10,000 of its cash to pay for supplies that were ordered on credit
terms and have already been received and booked (recorded on the balance sheet). Which of the
below statements reflects the resulting balance sheet change? correct answers The cash account
decreases by $10,000, and the accounts payable account decreases by $10,000.
Which of the following statements about common stock is incorrect? correct answers The claim
of shareholders on the cash flows of the firm is limited to the dividends that they receive—that
is, they have no claim on a business's residual earnings.
Consider the following balance sheet:
Cash $70,000
Accounts payable $30,000
Accounts receivable 30,000
Long-term debt 20,000
Inventories 50,000
Common stock 200,000
Net fixed assets 350,000
Retained earnings 250,000
Total assets $500,000
Total liabilities and equity $500,000
Assume that the business uses $30,000 of its cash to pay salaries. Which of the below statements
reflects the resulting balance sheet change? correct answers The cash account decreases by
$30,000, and the retained earnings account is reduced by $30,000.
Suppose that two hospitals are identical in all ways except that Hospital N is relatively new and
Hospital O is relatively old. Which of the following statements about a comparative financial
statement analysis is most correct? (Hint: Think about the differences in the amount of net fixed
assets (net plant and equipment) carried on the balance sheet and the amount of depreciation
expense reported on the income statement.) correct answers None of the abover statements are
correct
Which of the following statements about project classifications is most correct? correct answers
Projects are classified by purpose, such aws replacement projects
Projects are classified by size, such as those less than $1 million
Both A and B are correct
Which of the following statements about project life in capital budgeting analyses is most
correct? correct answers If the analysis extends over the project's expected life, a salvage value
cash flow is added to the timeline.
