FINANCIAL MANAGEMENT OF HEALTH CARE ORGANIZATIONS: AN INTRODUCTION TO FUNDAMENTAL
TOOLS, CONCEPTS, AND APPLICATIONS, FOURTH EDITION
Test Bank
Chapter 1
Multiple Choice
1. Which of the following is the goal of the U.S. health care system?
a. Access
b. Cost
c. Quality
d. All of the above
Answer: d
2. ACA is the abbreviation for what legislation?
a. Accountable Care Organizations
b. Patient Protection and Affordable Care Act
c. Activity Based Costing
d. Administrative Cost Accounting
Answer: b
3. Which of the following is not a provision that is expected to have a significant impact from the
ACA?
a. Requirement that all payments for health care be based on quality of services
b. Requirement that almost all individuals have insurance coverage
c. Establishment of payment mechanisms for bundled payments and value based purchasing
system
d. Requirement that states create insurance exchanges
Answer: a
4. The number of uninsured U.S. citizens rose between 2001 and 2010 from:
a. 5 million to 15 million
b. 20 million to 32 million
c. 36 million to 50 million
d. 55 million to 65 million
Answer: c
5. ACA provides a _______________ benefits package:
a. $0
b. Minimum
, c. Maximum
d. $5,000
Answer: b
6. Accountable Care Organizations as part of ACA are:
a. Mandatory
b. Exclusive
c. Voluntary
d. State organizations
Answer: c
7. Patient –Centered Medical Home is:
a. An expensive delivery system
b. An indication of poor quality
c. A partnership between primary care providers, patients and families
d. Not encouraged
Answer: c
8. All of the following factors contribute to the rising cost of health care except:
a. Aging population
b. New and returning consumers in the marketplace
c. Chronic Disease
d. Providers embracing lean Six Sigma and other techniques to deliver better care with less
resources
Answer: d
9. All of the following factors could contribute to a decrease in health care costs except:
a. Pharmaceuticals going off patent
b. Providers using health information technology in robust ways
c. Medical technology continuing to develop new systems
d. Hospitals overriding physician preference in supplies
Answer: c
10. The HITECH Act (2009) was enacted with the goal of:
a. Creating and expanding the current health care IT infrastructure
b. Promoting electronic data exchange
c. Substantially and rapidly increasing EHR adoption
d. All of the above
Answer: d
,True or False
1. Retail Health Care is not viable in today’s health care environment. True or False?
Answer: False
2. Litigation under ACA was sufficiently addressed. True or False?
Answer: False
3. Providers spend a significant amount of time and expense addressing compliance. True or
False?
Answer: True
4. Recovery Audit Contractors (RAC) auditors are independent contractors hired by CMS. True or
False?
Answer: True
5. Value Based Payment has been a part of Medicare since its inception. True or False?
Answer: False
6. Value Based Purchasing is designed to address only quality of care incentives. True or False?
Answer: False
7. ICD-10 as a coding system has been used in the United States for many years. True or False?
Answer: False
8. ACOs are voluntary groups of health care providers who coordinate care to a patient population.
True or False?
Answer: True
9. U.S. Health System goals remain unchanged. True or False?
Answer: True
10. Methods of health care financing remain unchanged. True or False?
Answer: False
Chapter 2
Multiple Choice
1. Which of the following is a basic financial statement?
a. Balance Sheet
, b. Statement of Operations
c. Statement of Cash Flows
d. All of the above
Answer: d
2. Balance Sheet for a non-profit contains all of the following except:
a. Organization’s assets
b. Organizations liabilities
c. Stockholders’ equity
d. Cash flow
Answer: c
3. Assets are defined as:
a. Long term debt
b. Cash, investments, inventory and receivables
c. Self-insurance reserves
d. Accrued pension
Answer: b
4. Liabilities are defined as:
a. Financial obligations due within a year
b. Cash and cash equivalents
c. Patient accounts receivable
d. Inventories
Answer: a
5. Net assets do not include one of the following categories:
a. Unrestricted
b. Belated
c. Temporary
d. Permanent
Answer: b
6. A statement of operations summarizes the organization’s total assets, liabilities and net assets in
what time period?
a. Last day of the accounting period
b. Over a period of time
c. Last quarter
d. Annually
TOOLS, CONCEPTS, AND APPLICATIONS, FOURTH EDITION
Test Bank
Chapter 1
Multiple Choice
1. Which of the following is the goal of the U.S. health care system?
a. Access
b. Cost
c. Quality
d. All of the above
Answer: d
2. ACA is the abbreviation for what legislation?
a. Accountable Care Organizations
b. Patient Protection and Affordable Care Act
c. Activity Based Costing
d. Administrative Cost Accounting
Answer: b
3. Which of the following is not a provision that is expected to have a significant impact from the
ACA?
a. Requirement that all payments for health care be based on quality of services
b. Requirement that almost all individuals have insurance coverage
c. Establishment of payment mechanisms for bundled payments and value based purchasing
system
d. Requirement that states create insurance exchanges
Answer: a
4. The number of uninsured U.S. citizens rose between 2001 and 2010 from:
a. 5 million to 15 million
b. 20 million to 32 million
c. 36 million to 50 million
d. 55 million to 65 million
Answer: c
5. ACA provides a _______________ benefits package:
a. $0
b. Minimum
, c. Maximum
d. $5,000
Answer: b
6. Accountable Care Organizations as part of ACA are:
a. Mandatory
b. Exclusive
c. Voluntary
d. State organizations
Answer: c
7. Patient –Centered Medical Home is:
a. An expensive delivery system
b. An indication of poor quality
c. A partnership between primary care providers, patients and families
d. Not encouraged
Answer: c
8. All of the following factors contribute to the rising cost of health care except:
a. Aging population
b. New and returning consumers in the marketplace
c. Chronic Disease
d. Providers embracing lean Six Sigma and other techniques to deliver better care with less
resources
Answer: d
9. All of the following factors could contribute to a decrease in health care costs except:
a. Pharmaceuticals going off patent
b. Providers using health information technology in robust ways
c. Medical technology continuing to develop new systems
d. Hospitals overriding physician preference in supplies
Answer: c
10. The HITECH Act (2009) was enacted with the goal of:
a. Creating and expanding the current health care IT infrastructure
b. Promoting electronic data exchange
c. Substantially and rapidly increasing EHR adoption
d. All of the above
Answer: d
,True or False
1. Retail Health Care is not viable in today’s health care environment. True or False?
Answer: False
2. Litigation under ACA was sufficiently addressed. True or False?
Answer: False
3. Providers spend a significant amount of time and expense addressing compliance. True or
False?
Answer: True
4. Recovery Audit Contractors (RAC) auditors are independent contractors hired by CMS. True or
False?
Answer: True
5. Value Based Payment has been a part of Medicare since its inception. True or False?
Answer: False
6. Value Based Purchasing is designed to address only quality of care incentives. True or False?
Answer: False
7. ICD-10 as a coding system has been used in the United States for many years. True or False?
Answer: False
8. ACOs are voluntary groups of health care providers who coordinate care to a patient population.
True or False?
Answer: True
9. U.S. Health System goals remain unchanged. True or False?
Answer: True
10. Methods of health care financing remain unchanged. True or False?
Answer: False
Chapter 2
Multiple Choice
1. Which of the following is a basic financial statement?
a. Balance Sheet
, b. Statement of Operations
c. Statement of Cash Flows
d. All of the above
Answer: d
2. Balance Sheet for a non-profit contains all of the following except:
a. Organization’s assets
b. Organizations liabilities
c. Stockholders’ equity
d. Cash flow
Answer: c
3. Assets are defined as:
a. Long term debt
b. Cash, investments, inventory and receivables
c. Self-insurance reserves
d. Accrued pension
Answer: b
4. Liabilities are defined as:
a. Financial obligations due within a year
b. Cash and cash equivalents
c. Patient accounts receivable
d. Inventories
Answer: a
5. Net assets do not include one of the following categories:
a. Unrestricted
b. Belated
c. Temporary
d. Permanent
Answer: b
6. A statement of operations summarizes the organization’s total assets, liabilities and net assets in
what time period?
a. Last day of the accounting period
b. Over a period of time
c. Last quarter
d. Annually
