Healthcare Finance Exam 2 Questions
with complete solution 2025/2026
Information that you'll find on an income statement (in detail) - correct answer ✔a. Sometimes called a
profit and loss statement
b. Summarizes a company's financial performance for a given time interval (usually one year)
c. Shows revenues coming in from all sources
d. Shows payments going out for all expenses (including cost of goods sold, payroll, interest, taxes,
depreciation)
e. The bottom line indicates the net income (profit or loss) for the given time period
f. Income: increase of economic benefits in a given period of time in the form of inflow of assets or a
decrease in liability
g. Expense: decrease in economic benefits in the form of cash outflow or an increase in the liabilities of
the company
Information you'll find on a balance sheet (in detail) - correct answer ✔Shows your current financial
position: what is coming in and going out for a period of time; assets, liabilities, equity
Provides 3 types of information - correct answer ✔Assets, liabilities, equity
Assets - correct answer ✔what a company owns
current assets - correct answer ✔those that can be converted into cash in a short time period
fixed assets: such as buildings and equipment
Liabilities - correct answer ✔companys debts (opposite of assets)`
, liabilities:Current debt - correct answer ✔obligations that must/will be paid in the near future
liabilities: long term debt - correct answer ✔obligations payable over a long period
Equity - correct answer ✔difference between assets and liabilities
Balance Sheet additional information - correct answer ✔Includes all the assets and liabilities of a
company in a sequential order which means that the most liquid assets are listed first and the most
pressing liabilities are first before smaller ones
Difference between an income statement and a balance sheet: similarities - correct answer ✔-Both
part of financial statements of a company for the perusal of all the stakeholders
-Used side by side by investors who want to understand the financial health of the company
Differences - correct answer ✔-Income statements reflect the current year's performance of the
company, whereas balance sheets contain information from the start of the company up to the financial
year ended
-income statements show the current profit and loss, whereas balance sheets show the overall financial
health of the company (overall assets and liabilities)
What revenue is: - correct answer ✔-amount earned by an organization
-actual or expected cash inflows to the organization's major business
-in the case of health care, revenue is mostly earned by providing care to patients (duh?)
**revenue is generally defined as the value of services rendered, expressed at the facility's full
established price**
Ways of controlling revenue - correct answer ✔-price setting
-payer contract negotiation
with complete solution 2025/2026
Information that you'll find on an income statement (in detail) - correct answer ✔a. Sometimes called a
profit and loss statement
b. Summarizes a company's financial performance for a given time interval (usually one year)
c. Shows revenues coming in from all sources
d. Shows payments going out for all expenses (including cost of goods sold, payroll, interest, taxes,
depreciation)
e. The bottom line indicates the net income (profit or loss) for the given time period
f. Income: increase of economic benefits in a given period of time in the form of inflow of assets or a
decrease in liability
g. Expense: decrease in economic benefits in the form of cash outflow or an increase in the liabilities of
the company
Information you'll find on a balance sheet (in detail) - correct answer ✔Shows your current financial
position: what is coming in and going out for a period of time; assets, liabilities, equity
Provides 3 types of information - correct answer ✔Assets, liabilities, equity
Assets - correct answer ✔what a company owns
current assets - correct answer ✔those that can be converted into cash in a short time period
fixed assets: such as buildings and equipment
Liabilities - correct answer ✔companys debts (opposite of assets)`
, liabilities:Current debt - correct answer ✔obligations that must/will be paid in the near future
liabilities: long term debt - correct answer ✔obligations payable over a long period
Equity - correct answer ✔difference between assets and liabilities
Balance Sheet additional information - correct answer ✔Includes all the assets and liabilities of a
company in a sequential order which means that the most liquid assets are listed first and the most
pressing liabilities are first before smaller ones
Difference between an income statement and a balance sheet: similarities - correct answer ✔-Both
part of financial statements of a company for the perusal of all the stakeholders
-Used side by side by investors who want to understand the financial health of the company
Differences - correct answer ✔-Income statements reflect the current year's performance of the
company, whereas balance sheets contain information from the start of the company up to the financial
year ended
-income statements show the current profit and loss, whereas balance sheets show the overall financial
health of the company (overall assets and liabilities)
What revenue is: - correct answer ✔-amount earned by an organization
-actual or expected cash inflows to the organization's major business
-in the case of health care, revenue is mostly earned by providing care to patients (duh?)
**revenue is generally defined as the value of services rendered, expressed at the facility's full
established price**
Ways of controlling revenue - correct answer ✔-price setting
-payer contract negotiation
