HCM 416 ACTUAL QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
Ch 01 - 1
Which of the following statements about finance, accounting, and financial
management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help managers
make better decisions.
c. Financial management involves the measurement, in financial terms, of
operational events that affect the resources and financing of an organization.
d. The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
e. Financial management is of no value in decision making.
D
Ch 01 - 2
Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management
,E
Ch 01 - 3
True or False: The four Cs (character, capability, charisma, and courtesy)
summarize the attributes needed to be a good financial manager.
a. True
b. False
B
Ch 01 - 4
True or False: The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a multitude of
activities such as cost containment, payer negotiations, and joint venture
activities.
a. True
b. False
A
Ch 01 - 5
Which of the following statements about the finance department at large
healthcare organizations is most correct?
a. The department is headed by the chief financial officer (CFO) (sometimes
called the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
d. The comptroller and treasurer often have managers under them responsible for
, specific functions such as patient accounts management and cash management.
e. All of the above statements are correct.
E
Ch 01 - 6
Which of the following statements about hospitals is most correct?
a. Patients at general acute care hospitals typically have long patient stays, often
30 or more days.
b. The number of specialty hospitals has declined over the last three decades.
c. The optimal size for a hospital is roughly 50 beds.
d. The majority of hospitals are public or not for profit (as opposed to investor
owned).
e. Most physicians involved with hospital services are hospital employees.
D
Ch 01 - 7
Which of the following statements about healthcare providers is incorrect?
a. Traditional outpatient settings include clinics, medical practices, hospital
outpatient departments, and emergency rooms.
b. Long-term care includes both healthcare and personal care services.
c. There are many more hospitals than there are nursing homes, but nursing
homes tend to have a greater number of beds.
d. One of the hypothesized benefits of integrated delivery systems is patient
capture.
COMPLETE SOLUTIONS
Ch 01 - 1
Which of the following statements about finance, accounting, and financial
management is most correct?
a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help managers
make better decisions.
c. Financial management involves the measurement, in financial terms, of
operational events that affect the resources and financing of an organization.
d. The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
e. Financial management is of no value in decision making.
D
Ch 01 - 2
Which of the following are not finance activities?
a. Planning and budgeting
b. Revenue cycle management
c. Financial reporting
d. Financial risk management
e. Facilities management
,E
Ch 01 - 3
True or False: The four Cs (character, capability, charisma, and courtesy)
summarize the attributes needed to be a good financial manager.
a. True
b. False
B
Ch 01 - 4
True or False: The role of finance in healthcare organizations has increased in
importance over time because the finance function must support a multitude of
activities such as cost containment, payer negotiations, and joint venture
activities.
a. True
b. False
A
Ch 01 - 5
Which of the following statements about the finance department at large
healthcare organizations is most correct?
a. The department is headed by the chief financial officer (CFO) (sometimes
called the vice-president finance).
b. The CFO typically reports directly to the chief executive officer (CEO).
c. The CFO usually is assisted by a comptroller and treasurer.
d. The comptroller and treasurer often have managers under them responsible for
, specific functions such as patient accounts management and cash management.
e. All of the above statements are correct.
E
Ch 01 - 6
Which of the following statements about hospitals is most correct?
a. Patients at general acute care hospitals typically have long patient stays, often
30 or more days.
b. The number of specialty hospitals has declined over the last three decades.
c. The optimal size for a hospital is roughly 50 beds.
d. The majority of hospitals are public or not for profit (as opposed to investor
owned).
e. Most physicians involved with hospital services are hospital employees.
D
Ch 01 - 7
Which of the following statements about healthcare providers is incorrect?
a. Traditional outpatient settings include clinics, medical practices, hospital
outpatient departments, and emergency rooms.
b. Long-term care includes both healthcare and personal care services.
c. There are many more hospitals than there are nursing homes, but nursing
homes tend to have a greater number of beds.
d. One of the hypothesized benefits of integrated delivery systems is patient
capture.
