FINANCIAL MANAGEMENT- TEST QUESTIONS AND
ANSWERS
1. An covers how the day-to-day
Operating
operating expenses, ie. labor and supplies, and
budget; capital
revenue will occur; a n covers expensive
budget.
equipment whose usefulness will last over many
years.
2. Healthcare organizations use cost accounting and
document costs because their insurers expect True.
accu- rate, honest, and complete records of every
dollar of cost.
3. An operating budget is one type of budget. This is
Operating
the budget used to plan/anticipate the unit's day-to-
day expenses and revenues. The operating expens- es are
estimat-
budget is a written plan -much like a plan of care
ed by collect-
for a patient- that tries to project/anticipate operating
expenses and revenues. ing data,
especial- ly data
on pa- tient
volume, pa-
tient acuity, and
required
staffing and
supply lev- els
for providing
care. Once the
data is
collected, the
nurse manag-
er can estimate
the next year's
ex- penses by:
looking at last
year's costs,
adjusting for
infla- tion, then
4. Understanding financial statements helps nurse adjust- ing for
man- agers know if the organization's income is any increas- es
enough to cover its expenses and losses. likely in patient
census and sub-
1
, FINANCIAL MANAGEMENT- TEST QUESTIONS AND
ANSWERS
sequently, nursing staff.
True. Yes, the abil- ity to read finan- cial statements
helps us know if
2
, FINANCIAL MANAGEMENT- TEST QUESTIONS AND
ANSWERS
the
organization is
healthy.
5. Unlike variable costs, such as fuel costs for an air-
line, fixed costs are the same regardless of volume. Nurse
Similarly, fixed staff are those present regardless of managers;
patient volume. In light of these facts, are direct care
nurs- es. This is
correct. Nurse
managers
examples of fixed staff and are examples are an example
of variable staff. of fixed staff
be- cause their
pres- ence or
numbers does
not depend on
patient volume
or acuity. The
num- ber of
direct care
nurses,
however, would
6. It is not important to track costs to stay "solvent" depend on
or financially healthy. patient volume.
False: Actually
tracking costs is
very important
to staying
solvent or
financially
healthy. This is
especially true
in healthcare
where the
differ- ence
between rev-
enues and
losses is often
3
ANSWERS
1. An covers how the day-to-day
Operating
operating expenses, ie. labor and supplies, and
budget; capital
revenue will occur; a n covers expensive
budget.
equipment whose usefulness will last over many
years.
2. Healthcare organizations use cost accounting and
document costs because their insurers expect True.
accu- rate, honest, and complete records of every
dollar of cost.
3. An operating budget is one type of budget. This is
Operating
the budget used to plan/anticipate the unit's day-to-
day expenses and revenues. The operating expens- es are
estimat-
budget is a written plan -much like a plan of care
ed by collect-
for a patient- that tries to project/anticipate operating
expenses and revenues. ing data,
especial- ly data
on pa- tient
volume, pa-
tient acuity, and
required
staffing and
supply lev- els
for providing
care. Once the
data is
collected, the
nurse manag-
er can estimate
the next year's
ex- penses by:
looking at last
year's costs,
adjusting for
infla- tion, then
4. Understanding financial statements helps nurse adjust- ing for
man- agers know if the organization's income is any increas- es
enough to cover its expenses and losses. likely in patient
census and sub-
1
, FINANCIAL MANAGEMENT- TEST QUESTIONS AND
ANSWERS
sequently, nursing staff.
True. Yes, the abil- ity to read finan- cial statements
helps us know if
2
, FINANCIAL MANAGEMENT- TEST QUESTIONS AND
ANSWERS
the
organization is
healthy.
5. Unlike variable costs, such as fuel costs for an air-
line, fixed costs are the same regardless of volume. Nurse
Similarly, fixed staff are those present regardless of managers;
patient volume. In light of these facts, are direct care
nurs- es. This is
correct. Nurse
managers
examples of fixed staff and are examples are an example
of variable staff. of fixed staff
be- cause their
pres- ence or
numbers does
not depend on
patient volume
or acuity. The
num- ber of
direct care
nurses,
however, would
6. It is not important to track costs to stay "solvent" depend on
or financially healthy. patient volume.
False: Actually
tracking costs is
very important
to staying
solvent or
financially
healthy. This is
especially true
in healthcare
where the
differ- ence
between rev-
enues and
losses is often
3
