Study.com Healthcare Finance - Health
305 Question and answers 100%
correct 2025/2026
Which of the following is a broad specialty of healthcare finance? - correct answer ✔Accounting
Which of the following is the definition of financial management in regards to healthcare finance? -
correct answer ✔The tools and theory used to make financial decisions
Which of the following is NOT something a healthcare provider has to do to maintain financial stability? -
correct answer ✔Write a healthcare bill
Which of the following is the definition of accounting in regards to healthcare finance? - correct answer
✔Recording your expenses and economic history to determine your resources, operations, and overall
financial standing
Which of the following is NOT one of the four C's used to describe the tools needed in healthcare
finance? - correct answer ✔Charisma
The primary role of financial management in healthcare organizations is to manage _____ to achieve the
financial goals of the organization. - correct answer ✔money and risk
Shawn is part of the financial team in a healthcare organization. When making an expenditure, he must
consider the _____ and benefit of the investment and the _____ that will be incurred. - correct answer
✔cost, debt
Emily works at a healthcare organization and wants to hire someone who is trained to identify, assess
and mitigate risks. Who should she hire? - correct answer ✔An actuary
,Analyzing the financial effectiveness and overall operations of the organization is part of the _____
function of financial management in healthcare organizations. Choose the best answer. - correct answer
✔evaluation and planning
Financial management teams in healthcare organizations are responsible for managing working capital.
What is working capital? - correct answer ✔Current assets minus liabilities
Who does the patient account manager report to in a finance department? - correct answer
✔Treasurer
Which of the following is a responsibility of the chief financial officer? - correct answer ✔Report
financial information to the chief executive officer
Which of the following individuals is not part of the finance department in a large scale healthcare
organization? - correct answer ✔Practice manager
General duties of the finance department include all of the following EXCEPT: - correct answer
✔Approving project plans when there is enough working capital on hand
Which of the following is NOT a responsibility of the patient accounts manager? - correct answer
✔Preparing financial statements
Predictive accounting focuses on which of the following? - correct answer ✔Using financial information
to forecast future operations
Managerial accounting provides information for which target group? - correct answer ✔Internal users
Financial accounting provides which of the following information? - correct answer ✔Information for
external users, such as investors
,Why are financial statements required to include financial information prepared according to GAAP? -
correct answer ✔It allows the public to ensure that all companies are using uniform guidelines when
preparing information.
What is the purpose of managerial accounting? - correct answer ✔To gather and report information
that adds value to a business.
Mary and Joanne would like to start their own jewelry business. They do not want to file a bunch of
papers, but also do not want to be personally liable for debts incurred by the company. Which form of
ownership should they pursue? - correct answer ✔LLC
How are taxes handled in a partnership form of business ownership? - correct answer ✔The business
passes its profits and losses to the owners, and they claim the profits and losses on their personal tax
return.
What is the most significant risk factor in a sole proprietorship? - correct answer ✔Unlimited liability,
even for employee actions
How are sole proprietorships taxed? - correct answer ✔As individuals
Which of these is a quality of a service-based business? - correct answer ✔Their product is primarily
composed of personal labor and expertise
Which of the following documents should NOT be included in the business plan? - correct answer ✔A
personal family picture
Which answer is NOT a main benefit of becoming a 501(c)3 nonprofit organization? - correct answer
✔Guaranteed funding to assist with startup costs
, What is one of the primary differences between for-profit and non-profit business? - correct answer
✔A non-profit business is required to have a board of directors to oversee all legal and financial
activities, whereas a for-profit business does not have this requirement.
On which financial statement are funds divided into 'unrestricted' and 'restricted' categories? - correct
answer ✔Balance Sheet
Which of the following is not a main purpose for a business plan? - correct answer ✔To apply for non-
profit status with the IRS
If you're creating a non-profit and interested in filing for tax-exempt status, which IRS form must you
complete? - correct answer ✔Form 1023
Choose the best answer to define tax-exempt. - correct answer ✔A reduction or elimination in paying
federal and/or state taxes
What are bonds? - correct answer ✔A contractual debt instrument with a promise of repayment.
Which one is NOT a requirement for maintaining tax exempt status? - correct answer ✔Distribute
earnings for personal and private benefit
Name three types of specialists who provide health services. - correct answer ✔Cardiologist,
obstetrician, and urologist
What type of nurse is someone who can prescribe medication and practices in family medicine, adult
care, pediatric care, or geriatric care? - correct answer ✔Nurse practitioner
305 Question and answers 100%
correct 2025/2026
Which of the following is a broad specialty of healthcare finance? - correct answer ✔Accounting
Which of the following is the definition of financial management in regards to healthcare finance? -
correct answer ✔The tools and theory used to make financial decisions
Which of the following is NOT something a healthcare provider has to do to maintain financial stability? -
correct answer ✔Write a healthcare bill
Which of the following is the definition of accounting in regards to healthcare finance? - correct answer
✔Recording your expenses and economic history to determine your resources, operations, and overall
financial standing
Which of the following is NOT one of the four C's used to describe the tools needed in healthcare
finance? - correct answer ✔Charisma
The primary role of financial management in healthcare organizations is to manage _____ to achieve the
financial goals of the organization. - correct answer ✔money and risk
Shawn is part of the financial team in a healthcare organization. When making an expenditure, he must
consider the _____ and benefit of the investment and the _____ that will be incurred. - correct answer
✔cost, debt
Emily works at a healthcare organization and wants to hire someone who is trained to identify, assess
and mitigate risks. Who should she hire? - correct answer ✔An actuary
,Analyzing the financial effectiveness and overall operations of the organization is part of the _____
function of financial management in healthcare organizations. Choose the best answer. - correct answer
✔evaluation and planning
Financial management teams in healthcare organizations are responsible for managing working capital.
What is working capital? - correct answer ✔Current assets minus liabilities
Who does the patient account manager report to in a finance department? - correct answer
✔Treasurer
Which of the following is a responsibility of the chief financial officer? - correct answer ✔Report
financial information to the chief executive officer
Which of the following individuals is not part of the finance department in a large scale healthcare
organization? - correct answer ✔Practice manager
General duties of the finance department include all of the following EXCEPT: - correct answer
✔Approving project plans when there is enough working capital on hand
Which of the following is NOT a responsibility of the patient accounts manager? - correct answer
✔Preparing financial statements
Predictive accounting focuses on which of the following? - correct answer ✔Using financial information
to forecast future operations
Managerial accounting provides information for which target group? - correct answer ✔Internal users
Financial accounting provides which of the following information? - correct answer ✔Information for
external users, such as investors
,Why are financial statements required to include financial information prepared according to GAAP? -
correct answer ✔It allows the public to ensure that all companies are using uniform guidelines when
preparing information.
What is the purpose of managerial accounting? - correct answer ✔To gather and report information
that adds value to a business.
Mary and Joanne would like to start their own jewelry business. They do not want to file a bunch of
papers, but also do not want to be personally liable for debts incurred by the company. Which form of
ownership should they pursue? - correct answer ✔LLC
How are taxes handled in a partnership form of business ownership? - correct answer ✔The business
passes its profits and losses to the owners, and they claim the profits and losses on their personal tax
return.
What is the most significant risk factor in a sole proprietorship? - correct answer ✔Unlimited liability,
even for employee actions
How are sole proprietorships taxed? - correct answer ✔As individuals
Which of these is a quality of a service-based business? - correct answer ✔Their product is primarily
composed of personal labor and expertise
Which of the following documents should NOT be included in the business plan? - correct answer ✔A
personal family picture
Which answer is NOT a main benefit of becoming a 501(c)3 nonprofit organization? - correct answer
✔Guaranteed funding to assist with startup costs
, What is one of the primary differences between for-profit and non-profit business? - correct answer
✔A non-profit business is required to have a board of directors to oversee all legal and financial
activities, whereas a for-profit business does not have this requirement.
On which financial statement are funds divided into 'unrestricted' and 'restricted' categories? - correct
answer ✔Balance Sheet
Which of the following is not a main purpose for a business plan? - correct answer ✔To apply for non-
profit status with the IRS
If you're creating a non-profit and interested in filing for tax-exempt status, which IRS form must you
complete? - correct answer ✔Form 1023
Choose the best answer to define tax-exempt. - correct answer ✔A reduction or elimination in paying
federal and/or state taxes
What are bonds? - correct answer ✔A contractual debt instrument with a promise of repayment.
Which one is NOT a requirement for maintaining tax exempt status? - correct answer ✔Distribute
earnings for personal and private benefit
Name three types of specialists who provide health services. - correct answer ✔Cardiologist,
obstetrician, and urologist
What type of nurse is someone who can prescribe medication and practices in family medicine, adult
care, pediatric care, or geriatric care? - correct answer ✔Nurse practitioner
