C428 Preassessment Exam Questions and
Answers Graded A+
A medical center is expanding its hospital staff to accommodate the increasing
number of flu cases seen over the past weeks.
Which type of finance activity is described in this scenario?
Cost
Cash
Capital
Control - Correct answer-Cost
A healthcare organization's senior finance leader is responsible for all financial
plans and activities related to reimbursement, accounting, budgeting, and
management for a healthcare system's financial well-being.
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,Which role matches this description?
Controller
Treasurer
Staff accountant
Chief financial officer - Correct answer-Chief financial officer
The most common structures of hospitals are religious, secular, or academic. These
organizations raise capital through donations and tax-exempt debt.
What is the legal structure of hospitals that raise capital through these means?
Not-for-profit: to break even
For-profit: to maximize profits
For-profit: to maximize shareholder value
Not-for-profit: to meet charitable purposes - Correct answer-Not-for-profit: to meet
charitable purposes
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,An established diagnostic center needs a new mammogram machine. The center
has incurred higher debt and is very highly leveraged but decides to apply for
another secured loan at its local bank.
What will the bank decide about the secured loan?
The interest rate will be lower.
The interest rate will be higher.
The interest rate will be variable.
The interest rate will remain stable. - Correct answer-The interest rate will be
higher.
A private hospital with a successful history of traditional patient care is seeking to
open a holistic treatment center off-site. It has secured an initial loan of five
million dollars.
How would the nature of this venture affect the interest rate that could be expected
on the loan?
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, A lower interest rate loan due to the organization's current assets
A higher interest rate loan due to the hospital's success rate
A lower interest rate loan due to the location of new site
A higher interest rate loan due to the alternative patient care - Correct answer-A
higher interest rate loan due to the alternative patient care
A healthcare organization has the following financial information available in a
balance sheet:
Assets:
Cash of $10,000
Accounts receivable of $5,000
Machinery & equipment of $50,000
Liabilities:
Accounts payable of $6,000
Loans payable of $25,000
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Answers Graded A+
A medical center is expanding its hospital staff to accommodate the increasing
number of flu cases seen over the past weeks.
Which type of finance activity is described in this scenario?
Cost
Cash
Capital
Control - Correct answer-Cost
A healthcare organization's senior finance leader is responsible for all financial
plans and activities related to reimbursement, accounting, budgeting, and
management for a healthcare system's financial well-being.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which role matches this description?
Controller
Treasurer
Staff accountant
Chief financial officer - Correct answer-Chief financial officer
The most common structures of hospitals are religious, secular, or academic. These
organizations raise capital through donations and tax-exempt debt.
What is the legal structure of hospitals that raise capital through these means?
Not-for-profit: to break even
For-profit: to maximize profits
For-profit: to maximize shareholder value
Not-for-profit: to meet charitable purposes - Correct answer-Not-for-profit: to meet
charitable purposes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,An established diagnostic center needs a new mammogram machine. The center
has incurred higher debt and is very highly leveraged but decides to apply for
another secured loan at its local bank.
What will the bank decide about the secured loan?
The interest rate will be lower.
The interest rate will be higher.
The interest rate will be variable.
The interest rate will remain stable. - Correct answer-The interest rate will be
higher.
A private hospital with a successful history of traditional patient care is seeking to
open a holistic treatment center off-site. It has secured an initial loan of five
million dollars.
How would the nature of this venture affect the interest rate that could be expected
on the loan?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, A lower interest rate loan due to the organization's current assets
A higher interest rate loan due to the hospital's success rate
A lower interest rate loan due to the location of new site
A higher interest rate loan due to the alternative patient care - Correct answer-A
higher interest rate loan due to the alternative patient care
A healthcare organization has the following financial information available in a
balance sheet:
Assets:
Cash of $10,000
Accounts receivable of $5,000
Machinery & equipment of $50,000
Liabilities:
Accounts payable of $6,000
Loans payable of $25,000
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
