Healthcare Finance 101 Question and
answers rated A+ 2025/2026
What are the three main reasons why healthcare managers are hired? - correct answer ✔-Good
Financial Management
-Efficient Practice Operations
-Enhanced Patient Care and Satisfaction
What are the main types of financial statements? - correct answer ✔-Balance Sheet
-Statement of Operations (Profit & Loss - P&L)
-Statement of Cash flows
What is the Balance Sheet? - correct answer ✔A quantitative summary of a company's financial
condition at a specific point in time.
What is the Balance sheet comprised of? - correct answer ✔First part- (Assets) shows what a company
owns.
Second Part- (Liabilities) what the company owes.
The remainder (Net Assets) is the difference between the two and represents the organization's
(retained earnings)
What is the Statement of Operations (P&L)? - correct answer ✔An accounting of revenues, expenses
and net profit for a given period.
What is the Statement of Cash Flows? - correct answer ✔Summary of the entity's cash receipts and
payments for a given period.
Shows Operating, Investing, and Financing activities.
, Where do you look on an income statement? - correct answer ✔-Revenue
-Expenses
-Operating Gain
Revenue on an income statement shows what? - correct answer ✔-Net Patient Service Revenue
(NPSR): the expected collections from patient care activity.
-Other Operating Revenue: non patient activity such as research revenue, academic revenue, operating
investment income.
Expenses on an income statement shows what? - correct answer ✔-Salaries and Benefits
-Supplies and Outside Services
-All other expenses.
What is Operating Gain? - correct answer ✔The amount of income made after expenses from
continuing hospital operations.
Where do you look on a Balance Sheet? - correct answer ✔-Current Assets (C/A)
-Current Liabilities (C/L)
What do Current Assets (C/A) on a Balance Sheet represent? - correct answer ✔Resources that are
available to the organization within a year.
-Cash, Investments, Receivables (generally for patient care services)
What do Current Liabilities (C/L) on a Balance Sheet represent? - correct answer ✔What the entity has
to pay within a year
-Debt payments, accounts payable, compensation & benefits, settlements with 3rd party payers.
answers rated A+ 2025/2026
What are the three main reasons why healthcare managers are hired? - correct answer ✔-Good
Financial Management
-Efficient Practice Operations
-Enhanced Patient Care and Satisfaction
What are the main types of financial statements? - correct answer ✔-Balance Sheet
-Statement of Operations (Profit & Loss - P&L)
-Statement of Cash flows
What is the Balance Sheet? - correct answer ✔A quantitative summary of a company's financial
condition at a specific point in time.
What is the Balance sheet comprised of? - correct answer ✔First part- (Assets) shows what a company
owns.
Second Part- (Liabilities) what the company owes.
The remainder (Net Assets) is the difference between the two and represents the organization's
(retained earnings)
What is the Statement of Operations (P&L)? - correct answer ✔An accounting of revenues, expenses
and net profit for a given period.
What is the Statement of Cash Flows? - correct answer ✔Summary of the entity's cash receipts and
payments for a given period.
Shows Operating, Investing, and Financing activities.
, Where do you look on an income statement? - correct answer ✔-Revenue
-Expenses
-Operating Gain
Revenue on an income statement shows what? - correct answer ✔-Net Patient Service Revenue
(NPSR): the expected collections from patient care activity.
-Other Operating Revenue: non patient activity such as research revenue, academic revenue, operating
investment income.
Expenses on an income statement shows what? - correct answer ✔-Salaries and Benefits
-Supplies and Outside Services
-All other expenses.
What is Operating Gain? - correct answer ✔The amount of income made after expenses from
continuing hospital operations.
Where do you look on a Balance Sheet? - correct answer ✔-Current Assets (C/A)
-Current Liabilities (C/L)
What do Current Assets (C/A) on a Balance Sheet represent? - correct answer ✔Resources that are
available to the organization within a year.
-Cash, Investments, Receivables (generally for patient care services)
What do Current Liabilities (C/L) on a Balance Sheet represent? - correct answer ✔What the entity has
to pay within a year
-Debt payments, accounts payable, compensation & benefits, settlements with 3rd party payers.
