HCAD 760 MIDTERM EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
1) policymaker or manager
2) type of healthcare organization
definition of healthcare finance depends on the context of:
health care finance
the practice of finance, including both accounting & financial management, within health
services (provider) organizations
accounting
measurement, in financial (dollar) terms, of events that reflect the resources, operations,
& financing of an organization; external reports, taxes
financial management
theory, concepts, & tools necessary to help managers make better financial decisions;
internal, improves organization's opportunities & efficiency
No, both capture, measure, & use data, but with different purpose
accounting & financial mgmt independent?
1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
characteristics of business:
, max shareholder return
goals of business (for profit)
max community or mission benefit
goals of pure charity
primary role of finance
to plan for, acquire, & utilize resources to maximize the efficiency (& hence value) of the
enterprise
1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
finance activities
Generally Accepted Accounting Principles
GAAP
1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
Four C's (summarize finance activities)
COMPLETE SOLUTIONS
1) policymaker or manager
2) type of healthcare organization
definition of healthcare finance depends on the context of:
health care finance
the practice of finance, including both accounting & financial management, within health
services (provider) organizations
accounting
measurement, in financial (dollar) terms, of events that reflect the resources, operations,
& financing of an organization; external reports, taxes
financial management
theory, concepts, & tools necessary to help managers make better financial decisions;
internal, improves organization's opportunities & efficiency
No, both capture, measure, & use data, but with different purpose
accounting & financial mgmt independent?
1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
characteristics of business:
, max shareholder return
goals of business (for profit)
max community or mission benefit
goals of pure charity
primary role of finance
to plan for, acquire, & utilize resources to maximize the efficiency (& hence value) of the
enterprise
1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
finance activities
Generally Accepted Accounting Principles
GAAP
1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
Four C's (summarize finance activities)
