HEALTH SERVICES FINANCE COMPLETE
STUDY GUIDE 2026 FINANCIAL
MANAGEMENT SOLUTIONS
◉ when conducting breakeven analysis for a new service at a
healthcare facility ___
Answer: you solve for the volume of the new service
◉ when a budget is balance, expenditures equal borrowing plus ___
Answer: net revenues
◉ variance analysis is most commonly performed on ___
Answer: operating budgets
◉ the manager is of a hospital blood bank learns that american red
cross will increase its charges for blood prodcuts by 7% next year.
what will she need to do when its time to prepare the blood banks
operating budget
Answer: need to increase expected charges for blood supplies by 7%
and apply that to the expected needs for blood products in the next
fiscal year. the expected needs will come from the statistical budget
,◉ hospital management in response to the 7% increase in costs of
blood procuts declares physician will be trained in coserving blood
products, and that this will decrease blood usage by at least 7%
therby eliminating the need to increase blood banks supply budget.
describe the flaws in this plan.
Answer: will not decrease usage. should be prepared for everything.
blood bank needs to take increase into consideration and prepare
for it. add to expenditures, increase cost of blood products to make
up for 7% increase. should not expect decrease in uage
◉ describe the process of benchmarking costs for budgeting
purposes
Answer: refers to comparing something to a standard. salaries and
benefits for a healthcare facilities employees typically compared
with other nearby facilities. supply costs per admission/encounter,
ratios for nurses to pts, pharmacy costs per admission, etc.
◉ t/f to reduce the risk of theft by an employee, a business should
have one employee who receives the cash for the cash drawer,
accepts the cash payments to make changes, and performs the cash
drawer balancing at end of day
Answer: false
◉ t/f bank reconciliation refers to the process of ragaining good
credit after missing payments on a bank loan
Answer: false
, ◉ which of the following is true about payroll in a large healthcare
facility
Answer: payroll tasks are complex and labor intensive
◉ which of the following is true about the statement of cash flows
Answer: included among generally accepted accounting principles
◉ the final section of the statment of cash flows reconciles cash to
the ___
Answer: balance sheet
◉ the final statement of bottom line of an annual statement of cash
flows is the end of year ___
Answer: total assets
◉ the net cash and cash equivalents from an end of fiscal year
statement of cash flows should match the ___
Answer: cash and cash equivalents on the balance sheet
◉ a medical practice uses its revenues to purchas a $20,000
certificate of deposit that matures in two years. the $20,000 CD
should be recorded as
STUDY GUIDE 2026 FINANCIAL
MANAGEMENT SOLUTIONS
◉ when conducting breakeven analysis for a new service at a
healthcare facility ___
Answer: you solve for the volume of the new service
◉ when a budget is balance, expenditures equal borrowing plus ___
Answer: net revenues
◉ variance analysis is most commonly performed on ___
Answer: operating budgets
◉ the manager is of a hospital blood bank learns that american red
cross will increase its charges for blood prodcuts by 7% next year.
what will she need to do when its time to prepare the blood banks
operating budget
Answer: need to increase expected charges for blood supplies by 7%
and apply that to the expected needs for blood products in the next
fiscal year. the expected needs will come from the statistical budget
,◉ hospital management in response to the 7% increase in costs of
blood procuts declares physician will be trained in coserving blood
products, and that this will decrease blood usage by at least 7%
therby eliminating the need to increase blood banks supply budget.
describe the flaws in this plan.
Answer: will not decrease usage. should be prepared for everything.
blood bank needs to take increase into consideration and prepare
for it. add to expenditures, increase cost of blood products to make
up for 7% increase. should not expect decrease in uage
◉ describe the process of benchmarking costs for budgeting
purposes
Answer: refers to comparing something to a standard. salaries and
benefits for a healthcare facilities employees typically compared
with other nearby facilities. supply costs per admission/encounter,
ratios for nurses to pts, pharmacy costs per admission, etc.
◉ t/f to reduce the risk of theft by an employee, a business should
have one employee who receives the cash for the cash drawer,
accepts the cash payments to make changes, and performs the cash
drawer balancing at end of day
Answer: false
◉ t/f bank reconciliation refers to the process of ragaining good
credit after missing payments on a bank loan
Answer: false
, ◉ which of the following is true about payroll in a large healthcare
facility
Answer: payroll tasks are complex and labor intensive
◉ which of the following is true about the statement of cash flows
Answer: included among generally accepted accounting principles
◉ the final section of the statment of cash flows reconciles cash to
the ___
Answer: balance sheet
◉ the final statement of bottom line of an annual statement of cash
flows is the end of year ___
Answer: total assets
◉ the net cash and cash equivalents from an end of fiscal year
statement of cash flows should match the ___
Answer: cash and cash equivalents on the balance sheet
◉ a medical practice uses its revenues to purchas a $20,000
certificate of deposit that matures in two years. the $20,000 CD
should be recorded as
