HC FINANCE HIM 420 EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
Equity is the - ANS money value of property and the ownership right in property
At the General Care Clinic, if total assets are $100,000, long term assets are $60,000 and other
assets are $10,000, what is the current asset amount? - ANS $30,000
The book and records of the financial information system for the organization serve to capture -
ANS transactions
Fred is responsible for revenue within his organization. Generally speaking, Fred is responsible
for - ANS Inflow
Many managers use which of the following two terms interchangeably? - ANS Expense and
cost
The three parts of the accounting equation must always balance among themselves, because
that is how they fit together - ANS True
A general services expense provides services necessary to maintain the patient, but the service
is not directly related to patient care - ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 1
, Payer mix - ANS all of these are correct
Equity of the business is affected by: - ANS revenues and expenses
Direct cost can be traced, while indirect costs have to be allocated - ANS True
A report example has been provided within the "cost classifiction" chapter that illustrates a
rehab cost center's allocation of indirect cost. The indirect cost "computer services" was
allocated to three types of therapy according to the number of computers in service for each
therapy type. Assume the number of computers has been changed to 20. If the indirect cost per
computer remains at $5,000, what is now the total computer service indirect cost? -
ANS $100,000
Mountain View Nursing Facility uses a chart of accounts format that is made up of three sets of
digits. The first set of digits represents the financial statement element, the second is for a
primary subclassification, and the third is for a secondary subclassification. To which of these
three sets of digits would "petty cash for the front office" belong? - ANS secondary
subclassification
One method of grouping revenue is by revenue source. Some grouping by revenue source may
typically include - ANS All of these are correct
The purpose of an organization chart includes - ANS all of these are correct
If a certain method of grouping revenue for planning and control is generally accepted in other
healthcare facilities, it is not strictly necessary for such a method to be consistent with the
current structure of the facility where it is in use - ANS False
Propriety entity subgroups include - ANS none of the above
One way to think of product cost is as necessary to the department, unit, and so on, to deliver
the service, while period costs are necessary to support the existence of the organization itself. -
ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 2
QUESTIONS AND ANSWERS GRADED A+
2026
Equity is the - ANS money value of property and the ownership right in property
At the General Care Clinic, if total assets are $100,000, long term assets are $60,000 and other
assets are $10,000, what is the current asset amount? - ANS $30,000
The book and records of the financial information system for the organization serve to capture -
ANS transactions
Fred is responsible for revenue within his organization. Generally speaking, Fred is responsible
for - ANS Inflow
Many managers use which of the following two terms interchangeably? - ANS Expense and
cost
The three parts of the accounting equation must always balance among themselves, because
that is how they fit together - ANS True
A general services expense provides services necessary to maintain the patient, but the service
is not directly related to patient care - ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 1
, Payer mix - ANS all of these are correct
Equity of the business is affected by: - ANS revenues and expenses
Direct cost can be traced, while indirect costs have to be allocated - ANS True
A report example has been provided within the "cost classifiction" chapter that illustrates a
rehab cost center's allocation of indirect cost. The indirect cost "computer services" was
allocated to three types of therapy according to the number of computers in service for each
therapy type. Assume the number of computers has been changed to 20. If the indirect cost per
computer remains at $5,000, what is now the total computer service indirect cost? -
ANS $100,000
Mountain View Nursing Facility uses a chart of accounts format that is made up of three sets of
digits. The first set of digits represents the financial statement element, the second is for a
primary subclassification, and the third is for a secondary subclassification. To which of these
three sets of digits would "petty cash for the front office" belong? - ANS secondary
subclassification
One method of grouping revenue is by revenue source. Some grouping by revenue source may
typically include - ANS All of these are correct
The purpose of an organization chart includes - ANS all of these are correct
If a certain method of grouping revenue for planning and control is generally accepted in other
healthcare facilities, it is not strictly necessary for such a method to be consistent with the
current structure of the facility where it is in use - ANS False
Propriety entity subgroups include - ANS none of the above
One way to think of product cost is as necessary to the department, unit, and so on, to deliver
the service, while period costs are necessary to support the existence of the organization itself. -
ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 2
