FINANCE FINAL EXAM QUESTIONS WITH
VERIFIED ANSWERS
Building a budget means making a series of assumptions. Thus the budgeting budget building
process should end with a review of strategy and objectives. - ✔✔false
Jim the radiology department director, believes the annual operating budgeting process is a tool
used to increase his department through the addition of staff and suppliers. Susan, the laboratory
department director, believes the annual operating budgeting process as a tool used to control
costs. Dr. Smith, the emergency department director, considers the budgeting process a nuisance
and believes he should simply increase all revenues and expenses by 5% for the coming year to
achieve a budget. Who's viewpoint represents the proper objective for the budgeting process? -
✔✔susan
The Horizon Healthcare foundation was formed to solicit donations that support certain
initiatives of the horizon hospital. The foundation is a separate legal entity that meets all the
relevant IRS criteria for foundations. David, the hospital controller, has prepared and operating
budget for the coming year that includes all revenues and expenses of the foundation within the
hospitals budget. Peggy, the hospital CFO, tells David to remove the foundation expenses and
revenues because it is a separate legal entity. Is Peggy's instructions true or false? - ✔✔true
Operating budgets generally deal with - ✔✔short term expenses
the next 12 months
static budgets are essentially based on the level of operations that will show change during the
budget period - ✔✔false
within a departmental operating budget, which of the following will probably be allocated? -
✔✔Patient related expense administrative expense
In the case of healthcare organizations, volume generally means - ✔✔-number of patient days
for inpatient services
-number of procedures for outpatient services
, Objectives of the budgeting process should include the provision of a - ✔✔basis for evaluation
financial performance in accordance with healthcare industry standards and policies
operating budgets typically - ✔✔contain expenses necessary to operate the facility
in regard to an operating budget, identifiable cost me generally include - ✔✔supporting patient
care
direct patient care
building a budget means making a series of assumptions. Thus the budget building process
should end with review of strategy and objectives - ✔✔false
Which of these statements is correct? - ✔✔-Flexible budgets can be used to review prior
performance of a department
-static budgets maybe used to plan a goal for the budgets period
Capital expenditure budget skin over can cover a 5 to 10 year period because they may take a
futuristic view - ✔✔true
Which of the following statements are correct? - ✔✔Managers in profit center responsibility
centers are responsible for controlling both costs and revenues
The four major reports are the balance sheet; the statement of revenue and expense; the statement
of changes in fund balance/net worth; and the cash flow statement. - ✔✔true
"Proceeds from loan on equipment" belongs on the statement of revenue and expenses. -
✔✔false
VERIFIED ANSWERS
Building a budget means making a series of assumptions. Thus the budgeting budget building
process should end with a review of strategy and objectives. - ✔✔false
Jim the radiology department director, believes the annual operating budgeting process is a tool
used to increase his department through the addition of staff and suppliers. Susan, the laboratory
department director, believes the annual operating budgeting process as a tool used to control
costs. Dr. Smith, the emergency department director, considers the budgeting process a nuisance
and believes he should simply increase all revenues and expenses by 5% for the coming year to
achieve a budget. Who's viewpoint represents the proper objective for the budgeting process? -
✔✔susan
The Horizon Healthcare foundation was formed to solicit donations that support certain
initiatives of the horizon hospital. The foundation is a separate legal entity that meets all the
relevant IRS criteria for foundations. David, the hospital controller, has prepared and operating
budget for the coming year that includes all revenues and expenses of the foundation within the
hospitals budget. Peggy, the hospital CFO, tells David to remove the foundation expenses and
revenues because it is a separate legal entity. Is Peggy's instructions true or false? - ✔✔true
Operating budgets generally deal with - ✔✔short term expenses
the next 12 months
static budgets are essentially based on the level of operations that will show change during the
budget period - ✔✔false
within a departmental operating budget, which of the following will probably be allocated? -
✔✔Patient related expense administrative expense
In the case of healthcare organizations, volume generally means - ✔✔-number of patient days
for inpatient services
-number of procedures for outpatient services
, Objectives of the budgeting process should include the provision of a - ✔✔basis for evaluation
financial performance in accordance with healthcare industry standards and policies
operating budgets typically - ✔✔contain expenses necessary to operate the facility
in regard to an operating budget, identifiable cost me generally include - ✔✔supporting patient
care
direct patient care
building a budget means making a series of assumptions. Thus the budget building process
should end with review of strategy and objectives - ✔✔false
Which of these statements is correct? - ✔✔-Flexible budgets can be used to review prior
performance of a department
-static budgets maybe used to plan a goal for the budgets period
Capital expenditure budget skin over can cover a 5 to 10 year period because they may take a
futuristic view - ✔✔true
Which of the following statements are correct? - ✔✔Managers in profit center responsibility
centers are responsible for controlling both costs and revenues
The four major reports are the balance sheet; the statement of revenue and expense; the statement
of changes in fund balance/net worth; and the cash flow statement. - ✔✔true
"Proceeds from loan on equipment" belongs on the statement of revenue and expenses. -
✔✔false
