Page 1 of 168
Accredited Test Bank Solution For
Gapenski's Fundamentals of Healthcare
Finance, 3rd Edition Reiter [All Lessons
Included]
Q1. Which of the following statements about finance,
accounting, or financial management is most correct?
A) Accounting is of no value in decision making.
B) Accounting provides the theory and concepts necessary to help
managers make better decisions.
C) Financial management involves the measurement, in financial
terms, of operational events that affect the resources and
financing of an organization.
D) The primary role of finance is to plan for, acquire, and use
resources to maximize the efficiency (and value) of the
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enterprise.
E) Financial management is of no value in decision making.
Answer: D
Rationale: The primary role of finance within health services
organizations is to plan for, acquire, and utilize resources to
maximize the efficiency and value of the enterprise . Accounting
measures financial events, while financial management provides
the tools for decision making.
Q2. Which of the following is NOT a finance activity?
A) Planning and budgeting
B) Revenue cycle management
C) Financial reporting
D) Financial risk management
E) Facilities management
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Answer: E
Rationale: Finance activities include planning and budgeting,
managing financial operations, financing decisions, capital
investment decisions, financial reporting, financial and
operational analysis, contract management, and financial risk
management. Facilities management is an operations function, not
a finance activity .
Q3. True or false: The four Cs (character, capability, charisma,
and courtesy) as described in the textbook summarize the
attributes needed to be a good financial manager.
A) True
B) False
Answer: B (False)
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Rationale: The four Cs that summarize finance activities are Costs,
Cash, Capital, and Control. Charisma and courtesy are not part
of the finance framework .
Q4. Which of the following is NOT typically considered a
responsibility of the Treasurer function in a healthcare finance
department?
A) Capital acquisition
B) Debt management
C) Financial risk management
D) Budgeting and reporting
E) Capital employment
Answer: D
Rationale: The Treasurer is responsible for capital acquisition,
capital employment, debt management, and financial risk
Accredited Test Bank Solution For
Gapenski's Fundamentals of Healthcare
Finance, 3rd Edition Reiter [All Lessons
Included]
Q1. Which of the following statements about finance,
accounting, or financial management is most correct?
A) Accounting is of no value in decision making.
B) Accounting provides the theory and concepts necessary to help
managers make better decisions.
C) Financial management involves the measurement, in financial
terms, of operational events that affect the resources and
financing of an organization.
D) The primary role of finance is to plan for, acquire, and use
resources to maximize the efficiency (and value) of the
,Page 2 of 168
enterprise.
E) Financial management is of no value in decision making.
Answer: D
Rationale: The primary role of finance within health services
organizations is to plan for, acquire, and utilize resources to
maximize the efficiency and value of the enterprise . Accounting
measures financial events, while financial management provides
the tools for decision making.
Q2. Which of the following is NOT a finance activity?
A) Planning and budgeting
B) Revenue cycle management
C) Financial reporting
D) Financial risk management
E) Facilities management
,Page 3 of 168
Answer: E
Rationale: Finance activities include planning and budgeting,
managing financial operations, financing decisions, capital
investment decisions, financial reporting, financial and
operational analysis, contract management, and financial risk
management. Facilities management is an operations function, not
a finance activity .
Q3. True or false: The four Cs (character, capability, charisma,
and courtesy) as described in the textbook summarize the
attributes needed to be a good financial manager.
A) True
B) False
Answer: B (False)
, Page 4 of 168
Rationale: The four Cs that summarize finance activities are Costs,
Cash, Capital, and Control. Charisma and courtesy are not part
of the finance framework .
Q4. Which of the following is NOT typically considered a
responsibility of the Treasurer function in a healthcare finance
department?
A) Capital acquisition
B) Debt management
C) Financial risk management
D) Budgeting and reporting
E) Capital employment
Answer: D
Rationale: The Treasurer is responsible for capital acquisition,
capital employment, debt management, and financial risk
