Healthcare Finance Test 1 Chapter 1-4
Question and answers verified to pass
2025/2026
Health Services - correct answer ✔Consists of providers of health services, including medical practice,
hospital, nursing home, home health care, and hospice industries.
Health Insurance - correct answer ✔Makes most of the payments to health services providers, included
government programs and commercial insurers as well as self-insurers. Also included here are Health
Maintenance Organizations (HMOs) which incorporate both insurance and health services.
Medical Equipment and Supplies - correct answer ✔Include the makers of diagnostic equipment, such
as X-ray machines; durable medical equipment, such as wheelchairs; and expendable medical supplies,
like disposable surgical instruments
Other (Definition of healthcare finance) - correct answer ✔includes a diverse collection f organizations
ranging from consulting firms to educational institutions to government and private agencies
Healthcare Finance - correct answer ✔the combination of many sub-sectors of the healthcare industry,
as well as accounting and financial management
Accounting - correct answer ✔Purpose is to create and provide to interested parties, both internal and
external, useful information about an organizations operations and financial status
Financial Management - correct answer ✔the field of finance that provides the theory, concepts, and
tools used by healthcare managers to make financial decisions
Budget - correct answer ✔a detailed plan in dollar terms, of how a business and its subunits will
acquire and utilize resources during a specified period of time
, Financial Statements - correct answer ✔statements prepared by accountants that convey the financial
status of an organization. the 4 primary statements are the income statement, balance sheet, statement
of changes in equity, and statement of cash flows
Capital Budgeting - correct answer ✔the process of analyzing and choosing new long-term assets such
as land, buildings, and equipment
Capital - correct answer ✔The funds used to finance a business
4 C's - correct answer ✔costs, cash, capital, and control
Cost - correct answer ✔a resource use associated with providing or supporting a specific service
Proprietorship - correct answer ✔A simple from of business owned by a single individual
Partnership - correct answer ✔a non incorporated business entity that is created by two or more
individuals
Corporation - correct answer ✔a legal business entity that is separate and distinct from its owners (or
community) and managers
Limited Liability Partnership (LLP) - correct answer ✔A partnership form of organization that limits the
professional (malpractice) liability of its partners
Investor-owned (for profit) corporation - correct answer ✔a corporation that is owned by shareholders
who furnish capital and expect to earn a return on their investment
Question and answers verified to pass
2025/2026
Health Services - correct answer ✔Consists of providers of health services, including medical practice,
hospital, nursing home, home health care, and hospice industries.
Health Insurance - correct answer ✔Makes most of the payments to health services providers, included
government programs and commercial insurers as well as self-insurers. Also included here are Health
Maintenance Organizations (HMOs) which incorporate both insurance and health services.
Medical Equipment and Supplies - correct answer ✔Include the makers of diagnostic equipment, such
as X-ray machines; durable medical equipment, such as wheelchairs; and expendable medical supplies,
like disposable surgical instruments
Other (Definition of healthcare finance) - correct answer ✔includes a diverse collection f organizations
ranging from consulting firms to educational institutions to government and private agencies
Healthcare Finance - correct answer ✔the combination of many sub-sectors of the healthcare industry,
as well as accounting and financial management
Accounting - correct answer ✔Purpose is to create and provide to interested parties, both internal and
external, useful information about an organizations operations and financial status
Financial Management - correct answer ✔the field of finance that provides the theory, concepts, and
tools used by healthcare managers to make financial decisions
Budget - correct answer ✔a detailed plan in dollar terms, of how a business and its subunits will
acquire and utilize resources during a specified period of time
, Financial Statements - correct answer ✔statements prepared by accountants that convey the financial
status of an organization. the 4 primary statements are the income statement, balance sheet, statement
of changes in equity, and statement of cash flows
Capital Budgeting - correct answer ✔the process of analyzing and choosing new long-term assets such
as land, buildings, and equipment
Capital - correct answer ✔The funds used to finance a business
4 C's - correct answer ✔costs, cash, capital, and control
Cost - correct answer ✔a resource use associated with providing or supporting a specific service
Proprietorship - correct answer ✔A simple from of business owned by a single individual
Partnership - correct answer ✔a non incorporated business entity that is created by two or more
individuals
Corporation - correct answer ✔a legal business entity that is separate and distinct from its owners (or
community) and managers
Limited Liability Partnership (LLP) - correct answer ✔A partnership form of organization that limits the
professional (malpractice) liability of its partners
Investor-owned (for profit) corporation - correct answer ✔a corporation that is owned by shareholders
who furnish capital and expect to earn a return on their investment
