CNML FINANCIAL MANAGEMENT EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED.
Balance Sheet
statement of assets, liabilities, and capital of an organization at a particular point in time
Revenue
operating revenue generated from primary business activities
gross operating revenue
total revenue earned with no expenses removed
net revenue
gross revenue minus all expenses
operating expenses
salaries, benefits, non-productive time, overtime, agency costs, overhead orientation and recruitment
costs, minor equipment, supplies, linen, food, and other contract services
budget variance
difference between expected budget targets versus actual budget results
gross changes
amount an organization bills if they are paid in full
, breakeven
revenue equals expenses
non-operating revenue
revenue from services outside the core services (example - investment income, durable medical
equiptment, retail services, joint ventures).
variable costs
costs that fluctuate with volume
fixed costs
costs that don't fluctuate with volume
market share
percentage of total volue for a health system for specific volumes within a health system as compared
with competitors in the same geographical "market" area
payer mix
percentage of revenue received from each payer source
return on investment
gain or loss generated on an investment relative to the amount of money invested
Net Profit/Total Investment x 100
Investment Income
Income from interest, dividends, and capital gains
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED.
Balance Sheet
statement of assets, liabilities, and capital of an organization at a particular point in time
Revenue
operating revenue generated from primary business activities
gross operating revenue
total revenue earned with no expenses removed
net revenue
gross revenue minus all expenses
operating expenses
salaries, benefits, non-productive time, overtime, agency costs, overhead orientation and recruitment
costs, minor equipment, supplies, linen, food, and other contract services
budget variance
difference between expected budget targets versus actual budget results
gross changes
amount an organization bills if they are paid in full
, breakeven
revenue equals expenses
non-operating revenue
revenue from services outside the core services (example - investment income, durable medical
equiptment, retail services, joint ventures).
variable costs
costs that fluctuate with volume
fixed costs
costs that don't fluctuate with volume
market share
percentage of total volue for a health system for specific volumes within a health system as compared
with competitors in the same geographical "market" area
payer mix
percentage of revenue received from each payer source
return on investment
gain or loss generated on an investment relative to the amount of money invested
Net Profit/Total Investment x 100
Investment Income
Income from interest, dividends, and capital gains
