HCM 416 MIDTERM EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
Which description defines the term accrual accounting best:
Recognizes income when cash obligations are created
The balance sheet reports the assets and liabilities of an organization...
At a given point in time
Which term listed on the balance sheet includes cash and other assets that are
expected to be converted into cash within one accounting period?
Current Assets
Which is statement is true of corporations? Select all that apply.
- Although each form of organization has its own unique advantages and
disadvantages, most large organizations, and all not for profit entities, are organized as
corporations.
- Investor-owned corporations have stockholders who are the owners of the corporation.
-One primary disadvantage of a corporation is that the corporate earnings of taxable
entities are subject to double taxation
Capitation is best described as...? Select all that apply
- When the provider pays a fixed amount per covered life per period (usually a month)
regardless of the amount of services provided
- Capitation payment dramatically changes the financial environment of healthcare
providers and is primarily used by managed care plans.
Which is not private insurer?
, Medicaid
Which term best describes an investor-owned corporation?
For-profit business organization
Which one of these would not be listed under current assets on a balance sheet?
notes payable
Revenues can be shown on the income statement in several different formats.
Choose the key term that represents revenues that stem directly from patient
services.
Net patient Service Revenue
Which statement concerning nonoperating income is false?
All income statements contain a separate section titled nonoperating income.
A major problem in our healthcare system that occurs because individuals and
businesses who are more likely to have claims are also more likely to have
insurance
adverse selection
Which of the following is not a fee-for-service payment method?
Capitation
Which of the following benefits is not included in the Affordable Care Act(ACA)?
Payment incentives
Which is the correct accounting equation for the balance sheet? Hint: there may
be more then one answer
a. Assets = Liabilities + Equity
b. Equity = Assets - Liabilities
COMPLETE SOLUTIONS GRADED A++
Which description defines the term accrual accounting best:
Recognizes income when cash obligations are created
The balance sheet reports the assets and liabilities of an organization...
At a given point in time
Which term listed on the balance sheet includes cash and other assets that are
expected to be converted into cash within one accounting period?
Current Assets
Which is statement is true of corporations? Select all that apply.
- Although each form of organization has its own unique advantages and
disadvantages, most large organizations, and all not for profit entities, are organized as
corporations.
- Investor-owned corporations have stockholders who are the owners of the corporation.
-One primary disadvantage of a corporation is that the corporate earnings of taxable
entities are subject to double taxation
Capitation is best described as...? Select all that apply
- When the provider pays a fixed amount per covered life per period (usually a month)
regardless of the amount of services provided
- Capitation payment dramatically changes the financial environment of healthcare
providers and is primarily used by managed care plans.
Which is not private insurer?
, Medicaid
Which term best describes an investor-owned corporation?
For-profit business organization
Which one of these would not be listed under current assets on a balance sheet?
notes payable
Revenues can be shown on the income statement in several different formats.
Choose the key term that represents revenues that stem directly from patient
services.
Net patient Service Revenue
Which statement concerning nonoperating income is false?
All income statements contain a separate section titled nonoperating income.
A major problem in our healthcare system that occurs because individuals and
businesses who are more likely to have claims are also more likely to have
insurance
adverse selection
Which of the following is not a fee-for-service payment method?
Capitation
Which of the following benefits is not included in the Affordable Care Act(ACA)?
Payment incentives
Which is the correct accounting equation for the balance sheet? Hint: there may
be more then one answer
a. Assets = Liabilities + Equity
b. Equity = Assets - Liabilities
