LSUS MHA 706 FINAL EXAM | FINANCIAL
MANAGEMENT FINAL EXAM 2024 WITH
QUESTIONS AND REAL ANSWERS //
ALREADY GRADED A+ // LATEST 2024/2025
According to DuPont analysis, ROE can be calculated as the product of what three
financial ratios?
-Total Margin
-Total Asset Turnover
-Equity Multiplier
Limitations associated with financial condition analysis:
-Sometimes hard to tell if a given ratio is 'good' or 'bad'
-Different operating and accounting practices can distort comparisons
-Seasonal factors can distort ratios
What financial statement can best show an organization's operations in regards to
liquidity?
Cash Budget
Select all of the correct ratios...
-Return on Assets = Net Income / Total Assets
-Total Margin = Net Income / Total Revenue
Long-Run
All cost are available
Semi-Fixed
Costs that partially depend on volume
Fixed Costs
, Costs that are independent of volume
Variable Costs
Costs that are dependent on volume
Possible negative outcomes with capitation
Providers may have a perverse incentive to reduce utilization (making it harder to
access care)
With Fee-for-Service (Volume Based) provider's financial risk is minimized if all
costs are...
variable
With Capitation provider's financial risk is minimized if all costs are...
fixed
Possible negative outcomes with Fee-for-Service
Providers may have perverse incentives to induce demand (providing more
services/tests than medically necessary)
Break-even volume
The volume needed for an organization (or service or program) to be financially
self-sufficient.
Two types of break-even conditions:
-Economic break-even
-Accounting break-even
The major provisions of the Patient Protection & Affordable Care Act of 2010
were?
-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
MANAGEMENT FINAL EXAM 2024 WITH
QUESTIONS AND REAL ANSWERS //
ALREADY GRADED A+ // LATEST 2024/2025
According to DuPont analysis, ROE can be calculated as the product of what three
financial ratios?
-Total Margin
-Total Asset Turnover
-Equity Multiplier
Limitations associated with financial condition analysis:
-Sometimes hard to tell if a given ratio is 'good' or 'bad'
-Different operating and accounting practices can distort comparisons
-Seasonal factors can distort ratios
What financial statement can best show an organization's operations in regards to
liquidity?
Cash Budget
Select all of the correct ratios...
-Return on Assets = Net Income / Total Assets
-Total Margin = Net Income / Total Revenue
Long-Run
All cost are available
Semi-Fixed
Costs that partially depend on volume
Fixed Costs
, Costs that are independent of volume
Variable Costs
Costs that are dependent on volume
Possible negative outcomes with capitation
Providers may have a perverse incentive to reduce utilization (making it harder to
access care)
With Fee-for-Service (Volume Based) provider's financial risk is minimized if all
costs are...
variable
With Capitation provider's financial risk is minimized if all costs are...
fixed
Possible negative outcomes with Fee-for-Service
Providers may have perverse incentives to induce demand (providing more
services/tests than medically necessary)
Break-even volume
The volume needed for an organization (or service or program) to be financially
self-sufficient.
Two types of break-even conditions:
-Economic break-even
-Accounting break-even
The major provisions of the Patient Protection & Affordable Care Act of 2010
were?
-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
