HSA 464 Midterm Questions and
Answers A+ Graded (2025)
The ..real ..key ..to ..understanding ..finance ..is ..- ..CORRECT ..ANSWER-the ..elements
..of ..finance ..and ..their ..relationship ..with ..each ..other
Managerial ..accounting ..is ..considered ..to ..be ..- ..CORRECT ..ANSWER-both
..prospective ..and ..retrospective
Inventory ..land ..cash ..and ..accounts ..receivable ..are ..all ..examples ..of ..- ..CORRECT
..ANSWER-assets
Net ..Worth ..- ..CORRECT ..ANSWER-What ..the ..business ..is ..worth, ..net ..of ..liabilities
What ..are ..the ..segments ..that ..make ..a ..healthcare ..financial ..system ..work ..-
..CORRECT ..ANSWER-original ..records, ..info ..systems, ..accounting ..systems,
..reporting ..systems
Contractual ..allowances ..may ..be ..entered ..on ..the ..books ..of ..hospital ..and ..private
..practice ..offices ..- ..CORRECT ..ANSWER-true
Revenue ..flows ..into ..the ..organization ..(inflow) ..and ..is ..sometimes ..referred ..to ..as
..the ..revenue ..- ..CORRECT ..ANSWER-stream
In ..case ..of ..non-profit ..orgs, ..does ..the ..outflow ..of ..expenses ..increase ..or
..decrease ..fund ..balance ..- ..CORRECT ..ANSWER-decrease
Another ..term ..for ..responsibility ..center ..is ..- ..CORRECT ..ANSWER-profit ..center
Direct ..costs ..can ..be ..traced ..while ..indirect ..costs ..have ..to ..be ..allocated ..-
..CORRECT ..ANSWER-true
If ..the ..full ..establish ..rate ..is ..$1000 ..and ..agreed ..upon ..contractual ..rate ..to ..be
..paid ..is ..$800, ..then ..the ..$200 ..difference ..is ..recorded ..on ..the ..books ..of ..the
..organization ..- ..CORRECT ..ANSWER-contractual ..allowance
, Contractual ..allowances ..are ..difference ..between ..agreed ..upon ..contractual ..rate
..that ..will ..be ..paid ..and ..the ..full ..- ..CORRECT ..ANSWER-established ..rate
Expenses ..in ..their ..broadest ..sense ..are ..- ..CORRECT ..ANSWER-Expired ..costs
..consumed ..while ..carrying ..on ..business
Most ..frequent ..pattern ..of ..semi ..variable ..costs ..is ..the ..step ..pattern ..- ..CORRECT
..ANSWER-true
The ..contribution ..margin ..is ..computed ..by ..subtracting ..variable ..cost ..from ..net
..revenues ..- ..CORRECT ..ANSWER-true
If ..the ..contribution ..main ..is ..expressed ..as ..a ..percentage ..of ..net ..revenues, ..it ..is
..often ..called ..- ..CORRECT ..ANSWER-profit ..volume ..ratio
As ..number ..of ..patients ..goes ..up, ..fixed ..costs ..go ..- ..CORRECT ..ANSWER-down
The ..break-even ..point ..is ..the ..point ..when ..the ..contribution ..margin ..equals ..-
..CORRECT ..ANSWER-fixed ..costs
Clinic ..pays ..flat ..monthly ..fee ..of ..$250 ..under ..2 ..year ..contract ..for ..computer
..services. ..The ..monthly ..fee ..for ..$250 ..is ..a ..fixed ..cost ..- ..CORRECT ..ANSWER-
Book ..depreciation ..is ..the ..depreciation ..expense ..recorded ..in ..the ..financial
..accounting ..records ..and ..reflected ..on ..the ..financial ..statements ..- ..CORRECT
..ANSWER-true
The ..statement ..of ..cash ..flows ..typically ..takes ..the ..basis ..statements ..and
..converts ..them ..to ..a ..cash ..flow ..for ..a ..period ..through ..a ..series ..of ..reconciling
..adjustments ..that ..account ..for ..the ..noncash ..amounts ..- ..CORRECT ..ANSWER-
accrual
Average ..annual ..net ..income ..divided ..by ..original ..investment ..amount ..equals ..-
..CORRECT ..ANSWER-rate ..of ..return
Return ..on ..total ..assets ..may ..be ..computed ..as ..- ..CORRECT ..ANSWER-earnings
..before ..interest ..and ..taxes ..(EBIT) ..divided ..by ..total ..assets
Liquidity ..ratios ..measure ..long ..or ..short ..term ..sufficiency ..- ..CORRECT ..ANSWER-
short ..term
How ..do ..you ..compute ..the ..operating ..margin ..- ..CORRECT ..ANSWER-operating
..income ..(loss)/ ..operating ..revenue
If ..operating ..income ..is ..%500,000 ..and ..total ..operating ..revenues ..are ..$10,000,000
..the ..correct ..operating ..margin ..is ..- ..CORRECT ..ANSWER-5%
The ..day's ..cash ..on ..hand ..ratio ..indicates ..cash ..on ..hand ..in ..relation ..to ..the
..amount ..of ..- ..CORRECT ..ANSWER-daily ..expenses
Answers A+ Graded (2025)
The ..real ..key ..to ..understanding ..finance ..is ..- ..CORRECT ..ANSWER-the ..elements
..of ..finance ..and ..their ..relationship ..with ..each ..other
Managerial ..accounting ..is ..considered ..to ..be ..- ..CORRECT ..ANSWER-both
..prospective ..and ..retrospective
Inventory ..land ..cash ..and ..accounts ..receivable ..are ..all ..examples ..of ..- ..CORRECT
..ANSWER-assets
Net ..Worth ..- ..CORRECT ..ANSWER-What ..the ..business ..is ..worth, ..net ..of ..liabilities
What ..are ..the ..segments ..that ..make ..a ..healthcare ..financial ..system ..work ..-
..CORRECT ..ANSWER-original ..records, ..info ..systems, ..accounting ..systems,
..reporting ..systems
Contractual ..allowances ..may ..be ..entered ..on ..the ..books ..of ..hospital ..and ..private
..practice ..offices ..- ..CORRECT ..ANSWER-true
Revenue ..flows ..into ..the ..organization ..(inflow) ..and ..is ..sometimes ..referred ..to ..as
..the ..revenue ..- ..CORRECT ..ANSWER-stream
In ..case ..of ..non-profit ..orgs, ..does ..the ..outflow ..of ..expenses ..increase ..or
..decrease ..fund ..balance ..- ..CORRECT ..ANSWER-decrease
Another ..term ..for ..responsibility ..center ..is ..- ..CORRECT ..ANSWER-profit ..center
Direct ..costs ..can ..be ..traced ..while ..indirect ..costs ..have ..to ..be ..allocated ..-
..CORRECT ..ANSWER-true
If ..the ..full ..establish ..rate ..is ..$1000 ..and ..agreed ..upon ..contractual ..rate ..to ..be
..paid ..is ..$800, ..then ..the ..$200 ..difference ..is ..recorded ..on ..the ..books ..of ..the
..organization ..- ..CORRECT ..ANSWER-contractual ..allowance
, Contractual ..allowances ..are ..difference ..between ..agreed ..upon ..contractual ..rate
..that ..will ..be ..paid ..and ..the ..full ..- ..CORRECT ..ANSWER-established ..rate
Expenses ..in ..their ..broadest ..sense ..are ..- ..CORRECT ..ANSWER-Expired ..costs
..consumed ..while ..carrying ..on ..business
Most ..frequent ..pattern ..of ..semi ..variable ..costs ..is ..the ..step ..pattern ..- ..CORRECT
..ANSWER-true
The ..contribution ..margin ..is ..computed ..by ..subtracting ..variable ..cost ..from ..net
..revenues ..- ..CORRECT ..ANSWER-true
If ..the ..contribution ..main ..is ..expressed ..as ..a ..percentage ..of ..net ..revenues, ..it ..is
..often ..called ..- ..CORRECT ..ANSWER-profit ..volume ..ratio
As ..number ..of ..patients ..goes ..up, ..fixed ..costs ..go ..- ..CORRECT ..ANSWER-down
The ..break-even ..point ..is ..the ..point ..when ..the ..contribution ..margin ..equals ..-
..CORRECT ..ANSWER-fixed ..costs
Clinic ..pays ..flat ..monthly ..fee ..of ..$250 ..under ..2 ..year ..contract ..for ..computer
..services. ..The ..monthly ..fee ..for ..$250 ..is ..a ..fixed ..cost ..- ..CORRECT ..ANSWER-
Book ..depreciation ..is ..the ..depreciation ..expense ..recorded ..in ..the ..financial
..accounting ..records ..and ..reflected ..on ..the ..financial ..statements ..- ..CORRECT
..ANSWER-true
The ..statement ..of ..cash ..flows ..typically ..takes ..the ..basis ..statements ..and
..converts ..them ..to ..a ..cash ..flow ..for ..a ..period ..through ..a ..series ..of ..reconciling
..adjustments ..that ..account ..for ..the ..noncash ..amounts ..- ..CORRECT ..ANSWER-
accrual
Average ..annual ..net ..income ..divided ..by ..original ..investment ..amount ..equals ..-
..CORRECT ..ANSWER-rate ..of ..return
Return ..on ..total ..assets ..may ..be ..computed ..as ..- ..CORRECT ..ANSWER-earnings
..before ..interest ..and ..taxes ..(EBIT) ..divided ..by ..total ..assets
Liquidity ..ratios ..measure ..long ..or ..short ..term ..sufficiency ..- ..CORRECT ..ANSWER-
short ..term
How ..do ..you ..compute ..the ..operating ..margin ..- ..CORRECT ..ANSWER-operating
..income ..(loss)/ ..operating ..revenue
If ..operating ..income ..is ..%500,000 ..and ..total ..operating ..revenues ..are ..$10,000,000
..the ..correct ..operating ..margin ..is ..- ..CORRECT ..ANSWER-5%
The ..day's ..cash ..on ..hand ..ratio ..indicates ..cash ..on ..hand ..in ..relation ..to ..the
..amount ..of ..- ..CORRECT ..ANSWER-daily ..expenses
