MHA 706 FINANCIAL MANAGEMENT MIDTERM EXAM
AND STUDY GUIDE NEWEST 2024 ACTUAL EXAM 200
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
healthcare finance - ANSWER: the accounting and financial management principles
and practices used within health services organizations to ensure the financial well-
being of the enterprise
healthcare sector - ANSWER: consists of a diverse collection of industries that involve
the healthcare of the population
provider - ANSWER: an organization that provides healthcare services
business - ANSWER: maintains financial viability by selling goods or services
pure charity - ANSWER: relies solely on contributions
finance - ANSWER: consists of both accounting and financial management functions
primary role of finance - ANSWER: to plan for, acquire, and use resources to
maximize the efficiency and value of the enterprise
accounting - ANSWER: concerns the recording of economic events that reflect the
operations, resources, and financing of an organization
financial management - ANSWER: provides the theory, concepts, and tools necessary
to help managers make better financial decisions
planning and budgeting - ANSWER: involves evaluating the financial effectiveness of
current operations and planning for the future
financial reporting - ANSWER: recording and reporting to outsiders the results of
operations and current financial status
capital budgeting - ANSWER: the process of analyzing and choosing new fixed assets
financing decisions - ANSWER: all organizations must raise capital to buy the assets
necessary to support operations
working capital management - ANSWER: a managerial accounting strategy focusing
on maintaining efficient levels of both components of working capital, current assets
and current liabilities, in respect to each other
, contract management - ANSWER: the process of managing contract creation,
execution and analysis to maximize operational and financial performance at an
organization, all while reducing financial risk
financial risk management - ANSWER: the practice of economic value in a firm by
using financial instruments to manage exposure to risk, particularly credit risk and
market risk
four C's - ANSWER: costs, cash, capital, and control
cost - ANSWER: a resource use associated with providing or supporting a specific
service
chief financial officer - ANSWER: typically reports directly to the CEO
chief executive officer - ANSWER: responsible for all finance activities within the
organization
comptroller - ANSWER: responsible for accounting and reporting activities
treasurer - ANSWER: responsible for then acquisition and management of capital
patient accounts manager - ANSWER: reports to the comptroller
cash manager - ANSWER: reports to treasurer
business practice manager - ANSWER: in small health services organizations, the
finance responsibilities are combined and assigned to this person
hospitals - ANSWER: provide diagnostic and therapeutic services to individuals who
require more that several hours of care
general acute care hospitals - ANSWER: provide general medical and surgical services
and selected acute specialty services
tertiary care - ANSWER: highly specialized and technical in nature, with services for
patients with unusually severe, complex, or uncommon problems
governmental hospitals - ANSWER: federal and public entities
federal hospitals - ANSWER: operated by military services or the US Department of
Veterans Affairs
public hospitals - ANSWER: funded wholly or in part by a city, county, tax district, or
state
AND STUDY GUIDE NEWEST 2024 ACTUAL EXAM 200
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
healthcare finance - ANSWER: the accounting and financial management principles
and practices used within health services organizations to ensure the financial well-
being of the enterprise
healthcare sector - ANSWER: consists of a diverse collection of industries that involve
the healthcare of the population
provider - ANSWER: an organization that provides healthcare services
business - ANSWER: maintains financial viability by selling goods or services
pure charity - ANSWER: relies solely on contributions
finance - ANSWER: consists of both accounting and financial management functions
primary role of finance - ANSWER: to plan for, acquire, and use resources to
maximize the efficiency and value of the enterprise
accounting - ANSWER: concerns the recording of economic events that reflect the
operations, resources, and financing of an organization
financial management - ANSWER: provides the theory, concepts, and tools necessary
to help managers make better financial decisions
planning and budgeting - ANSWER: involves evaluating the financial effectiveness of
current operations and planning for the future
financial reporting - ANSWER: recording and reporting to outsiders the results of
operations and current financial status
capital budgeting - ANSWER: the process of analyzing and choosing new fixed assets
financing decisions - ANSWER: all organizations must raise capital to buy the assets
necessary to support operations
working capital management - ANSWER: a managerial accounting strategy focusing
on maintaining efficient levels of both components of working capital, current assets
and current liabilities, in respect to each other
, contract management - ANSWER: the process of managing contract creation,
execution and analysis to maximize operational and financial performance at an
organization, all while reducing financial risk
financial risk management - ANSWER: the practice of economic value in a firm by
using financial instruments to manage exposure to risk, particularly credit risk and
market risk
four C's - ANSWER: costs, cash, capital, and control
cost - ANSWER: a resource use associated with providing or supporting a specific
service
chief financial officer - ANSWER: typically reports directly to the CEO
chief executive officer - ANSWER: responsible for all finance activities within the
organization
comptroller - ANSWER: responsible for accounting and reporting activities
treasurer - ANSWER: responsible for then acquisition and management of capital
patient accounts manager - ANSWER: reports to the comptroller
cash manager - ANSWER: reports to treasurer
business practice manager - ANSWER: in small health services organizations, the
finance responsibilities are combined and assigned to this person
hospitals - ANSWER: provide diagnostic and therapeutic services to individuals who
require more that several hours of care
general acute care hospitals - ANSWER: provide general medical and surgical services
and selected acute specialty services
tertiary care - ANSWER: highly specialized and technical in nature, with services for
patients with unusually severe, complex, or uncommon problems
governmental hospitals - ANSWER: federal and public entities
federal hospitals - ANSWER: operated by military services or the US Department of
Veterans Affairs
public hospitals - ANSWER: funded wholly or in part by a city, county, tax district, or
state
