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HMGT 3311 EXAM REVIEW CH.
1,2,3 & 4-13 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
What is the typical provider Revenue Cycle? - correct answer --
Employee pays for care $ to Providers
-Employees pay a premium every month to Employer
-Employer pays Premium plus monthly cost to Payor Insurance
Company
-Payor Insurnace company pays the payment for care to Provider
-Provider charges invoice for care to Payor and Employees
What are liabilities? - correct answer --Obligations of the entity to
pay its creditors
-Can be debts (Notes/Accounts Payable) or other obligations
-Current Liabilities-Due within one year
Net Assests may also include ___________ _________ in the
Entity (NCI) - correct answer -non-controlling interes
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What is in Stockholders's Equity? - correct answer --Par value of
the stock (Preferred and Common)
-Excess of par value (APIC)
-Retained Earnings (accumulated comprehensive income/loss
over the life of the entity)
What is statement of operations? - correct answer --Income
Statement equivalent
-Entity's revenues & expenses over a period of time
-Period is usually the time between statements
-Uses the accrual basis for accounting, not cash basis
In Other revenue it does NOT include ______ ___ ______ -
correct answer -transfers to parent
What are nonoperating items? - correct answer -Non-operating
items: non-recurring, would distort operating income
What is performance indicator? - correct answer -Excess of
Revenue over Expenses - analogous to Net Income
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What is Statement of changes in Net Assets? - correct answer --
Simply summarizes movements in Net Assets accounts
-Related to for-profit Statement of Changes in Stockholders'
Equity
What is the statement of Cash Flows? - correct answer --Converts
the accrual basis financial statements into cash flow
-Covers the same time period as the statement of operations
-Explains movement in ending cash from one period to the next
How does statement of cash flow segregates the cash flow into
meaningful areas? - correct answer --Cash flows from operations
-Cash flows from investing
-Cash flows from financing
Increase in Assest = _____ Cash - correct answer -Decrease
Decrease in Assest = _____ Cash - correct answer -Increase
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Increase in Liabilities= ______ Cash - correct answer -Increase
Decrease in Liabilities= ________ Cash - correct answer -
Decrease
Balanced Sheet: What are its main sections in investor-owned
health care entities? - correct answer -The three sections of the
balance sheet for investor-owned entity are:
assets, liabilities, and shareholders' equity.
Balanced Sheet: What are its main sections in not-for-profit health
care entities? - correct answer -The three sections of the balance
sheet for not-for-profit, business- oriented health care entitys are:
assets, liabilities, and net assets.
Balanced Sheet: What is deducted from gross patient accounts
receivable to arrive at net patient accounts receivable? - correct
answer -Patient Accounts Receivable is money owed to the entity
by patients or their third-parties for services rendered. It is what
remains after contractual allowances and charity care have been
HMGT 3311 EXAM REVIEW CH.
1,2,3 & 4-13 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
What is the typical provider Revenue Cycle? - correct answer --
Employee pays for care $ to Providers
-Employees pay a premium every month to Employer
-Employer pays Premium plus monthly cost to Payor Insurance
Company
-Payor Insurnace company pays the payment for care to Provider
-Provider charges invoice for care to Payor and Employees
What are liabilities? - correct answer --Obligations of the entity to
pay its creditors
-Can be debts (Notes/Accounts Payable) or other obligations
-Current Liabilities-Due within one year
Net Assests may also include ___________ _________ in the
Entity (NCI) - correct answer -non-controlling interes
, Page | 2
What is in Stockholders's Equity? - correct answer --Par value of
the stock (Preferred and Common)
-Excess of par value (APIC)
-Retained Earnings (accumulated comprehensive income/loss
over the life of the entity)
What is statement of operations? - correct answer --Income
Statement equivalent
-Entity's revenues & expenses over a period of time
-Period is usually the time between statements
-Uses the accrual basis for accounting, not cash basis
In Other revenue it does NOT include ______ ___ ______ -
correct answer -transfers to parent
What are nonoperating items? - correct answer -Non-operating
items: non-recurring, would distort operating income
What is performance indicator? - correct answer -Excess of
Revenue over Expenses - analogous to Net Income
, Page | 3
What is Statement of changes in Net Assets? - correct answer --
Simply summarizes movements in Net Assets accounts
-Related to for-profit Statement of Changes in Stockholders'
Equity
What is the statement of Cash Flows? - correct answer --Converts
the accrual basis financial statements into cash flow
-Covers the same time period as the statement of operations
-Explains movement in ending cash from one period to the next
How does statement of cash flow segregates the cash flow into
meaningful areas? - correct answer --Cash flows from operations
-Cash flows from investing
-Cash flows from financing
Increase in Assest = _____ Cash - correct answer -Decrease
Decrease in Assest = _____ Cash - correct answer -Increase
, Page | 4
Increase in Liabilities= ______ Cash - correct answer -Increase
Decrease in Liabilities= ________ Cash - correct answer -
Decrease
Balanced Sheet: What are its main sections in investor-owned
health care entities? - correct answer -The three sections of the
balance sheet for investor-owned entity are:
assets, liabilities, and shareholders' equity.
Balanced Sheet: What are its main sections in not-for-profit health
care entities? - correct answer -The three sections of the balance
sheet for not-for-profit, business- oriented health care entitys are:
assets, liabilities, and net assets.
Balanced Sheet: What is deducted from gross patient accounts
receivable to arrive at net patient accounts receivable? - correct
answer -Patient Accounts Receivable is money owed to the entity
by patients or their third-parties for services rendered. It is what
remains after contractual allowances and charity care have been
