GCU HCA240 Quiz Financial Terminology

Question Question 1 Accounts receivable refers to which one of the following? The amount billed for services rendered. The amount of actual revenue collected for services rendered. The amount due to the organization from patients, third parties, and others. The amount owed to others for services, including suppliers and creditors. Question 2 Which one of the following is the most important measure of financial success? The amount of capital depreciation. The amount of cash on hand. The amount of bad debt reversed. The rate of equity growth. Question 3 EBITA is a calculation used by purchasers of organizations to determine worth. True False Question 4 Which of the following are major categories of ratios used to analyze the financial condition of an organization as derived from line items found in the financial statements? Choose all that apply. Activity. Liquidity Difference between gross and net average. Ratio of Medicare patients. Question 5 The classification “Current Assets” refers to which one of the following? The amount of money put aside for a “rainy day.” The amount of money invested in plant and operations. A measure of current assets to all current liabilities. Assets that will be used or consumed within one year or period. Question 6 Which of the following is NOT included in the four major types of financial statements? The statement of cash flow. The revenue rate variance report. The balance sheet. The statement of changes in fund balances and net assets. Question 7 Net patient service revenue is defined as? The revenue that the organization has a right to collect after contractual allowances and charity care are deducted. The amount of charges for patient services the organization bills and finally collects. The total amount the health care organization earns at full retail price. The amount of revenue budgeted minus collected revenue paid out against operating expenses. Question 8 Depreciation refers to which one of the following? The amount of money still owed on a tangible asset, minus the amount of expenses spent to facilitate the utilization of the asset (utilities, personnel, enabling assets, etc.). An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that requires the use of cash deducted from the operations revenue. An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting. The amount of money that is lost over a period when services are underutilized. Question 9 Medicaid patients are the second largest category of nursing home patients and reimbursement is dependent upon the economic condition of the state in which it operates. True False Question 10 Case mix index (CMI) refers to which one of the following? The percentage of Medicare outpatient cases handled compared to inpatient. The average revenue realized per case type. Considered a key indicator used in determining patient charges. A measurement that indicates the average complexity of Medicare inpatients seen. Question 11 The Sarbanes-Oxley Act is referred to as which one of the following? Patient private and privileged information protection act. Legislation to regulate nefarious accounting practices within the health care industry. Public company accounting reform and investor protection act. Anti-dumping/screening health care legislation. Question 12 Bad debt refers to which one of the following? The amount of an asset used up during a specific accounting period. The amount of money owed for services provided, including charity care, that is not expected to be recovered. Investments made by the organization that lose money, but still have balances due. The amount of money owed for services provided, excluding charity care, that is not expected to be recovered. Question 13 EMTALA refers to regulation that was initiated to protect the privacy of patient information. True False Question 14 Cash and cash equivalents refers to which one of the following? Cash that is invested in bonds and stocks. Actual money on hand as well as savings and checking accounts. Money due for services provided. Cash that is invested in interest bearing accounts. Question 15 Which health care accounts receivable (AR) items are essentially different from the same AR items in other business organizations? Choose all that apply. Allowances are recommended when an indigent patient is charged less. The amount of charges billed to patients is often settled for substantially less. Allowances include courtesy, charity, and contractual and doubtful accounts. Allowances are permitted to restate accounts receivable.