Healthcare Financial Management
Question and answers verified to pass
2025/2026
The purpose of a not-for-profit healthcare facility is to - correct answer ✔provide healthcare services to
the community.
What are the five management functions? - correct answer ✔Planning, organizing, staffing, controlling,
directing
The purpose of healthcare financial management is to - correct answer ✔provide accounting and
financial information that assists the manager in achieving the
organization's purpose.
What is the highest level of education most CFOs have completed? - correct answer ✔Master's degree
Accounting is generally divided into what major areas? - correct answer ✔Financial accounting and
managerial accounting
The purpose of financial accounting is to provide - correct answer ✔historic accounting information to
external users, such as stakeholders.
The purpose of managerial accounting is to provide - correct answer ✔current or prospective
accounting information to internal users, including managers
Healthcare financial managers follow which of the following common measures? - correct answer
✔Average length of stay
,Cost accounting is defined as the - correct answer ✔study of costs, including methods for classifying,
allocating, and identifying costs.
Historically, the purpose of finance was to - correct answer ✔borrow and invest the funds necessary for
the organization to achieve its purpose
Today, the purpose of finance is to - correct answer ✔analyze information provided by managerial
accounting to evaluate past decisions and make
sound decisions in the future.
The most important objective of healthcare financial management is to - correct answer ✔generate
income
Direct measures of quality assume that - correct answer ✔an organization can define and measure
quality itself.
Direct measures of quality include - correct answer ✔goal-based, connoisseurship, responsive, and
decision-making measures
Indirect measures of quality assume that - correct answer ✔an organization can define and measure
the results of quality.
Indirect measures of quality include - correct answer ✔resource, outcome, value-added, and
reputational measures.
Who established the National Patient Safety Goals? - correct answer ✔The Joint Commission
Managers typically represent a __________ view of ethics, whereas clinicians typically represent a
_________ view of ethics. - correct answer ✔utilitarian; deontological
, Healthcare expenditures as a percent of gross domestic product are about - correct answer ✔18
percent
By the type of service, the largest healthcare expenditure are - correct answer ✔hospitals
By source of funds, the largest healthcare payer is - correct answer ✔private health insurance
Which of the following should be monitored by the healthcare financial managers? - correct answer
✔Admissions, average daily census, average length of stay (all of the above)
The three management connective processes are - correct answer ✔communication, coordinating, and
decision making
The worst example of conflict of interest is - correct answer ✔conflict between the manager's duties to
the organization and when managers use their positions of authority for personal gains (Bother b and c)
Which of the following is important to financial management as a direct measure of quality? - correct
answer ✔Decision making
Which of the following elements will NOT profoundly affect the financial situation of a healthcare
organization? - correct answer ✔Decrease in the number of individuals without insurance
According to Rose Dunn, organizing includes which of the following? - correct answer ✔Establishing a
unity of command, departmentalization, specialization (All the above)
The governing body of a healthcare organization is responsible for - correct answer ✔proper
development, utilization, and maintenance of all resources
Question and answers verified to pass
2025/2026
The purpose of a not-for-profit healthcare facility is to - correct answer ✔provide healthcare services to
the community.
What are the five management functions? - correct answer ✔Planning, organizing, staffing, controlling,
directing
The purpose of healthcare financial management is to - correct answer ✔provide accounting and
financial information that assists the manager in achieving the
organization's purpose.
What is the highest level of education most CFOs have completed? - correct answer ✔Master's degree
Accounting is generally divided into what major areas? - correct answer ✔Financial accounting and
managerial accounting
The purpose of financial accounting is to provide - correct answer ✔historic accounting information to
external users, such as stakeholders.
The purpose of managerial accounting is to provide - correct answer ✔current or prospective
accounting information to internal users, including managers
Healthcare financial managers follow which of the following common measures? - correct answer
✔Average length of stay
,Cost accounting is defined as the - correct answer ✔study of costs, including methods for classifying,
allocating, and identifying costs.
Historically, the purpose of finance was to - correct answer ✔borrow and invest the funds necessary for
the organization to achieve its purpose
Today, the purpose of finance is to - correct answer ✔analyze information provided by managerial
accounting to evaluate past decisions and make
sound decisions in the future.
The most important objective of healthcare financial management is to - correct answer ✔generate
income
Direct measures of quality assume that - correct answer ✔an organization can define and measure
quality itself.
Direct measures of quality include - correct answer ✔goal-based, connoisseurship, responsive, and
decision-making measures
Indirect measures of quality assume that - correct answer ✔an organization can define and measure
the results of quality.
Indirect measures of quality include - correct answer ✔resource, outcome, value-added, and
reputational measures.
Who established the National Patient Safety Goals? - correct answer ✔The Joint Commission
Managers typically represent a __________ view of ethics, whereas clinicians typically represent a
_________ view of ethics. - correct answer ✔utilitarian; deontological
, Healthcare expenditures as a percent of gross domestic product are about - correct answer ✔18
percent
By the type of service, the largest healthcare expenditure are - correct answer ✔hospitals
By source of funds, the largest healthcare payer is - correct answer ✔private health insurance
Which of the following should be monitored by the healthcare financial managers? - correct answer
✔Admissions, average daily census, average length of stay (all of the above)
The three management connective processes are - correct answer ✔communication, coordinating, and
decision making
The worst example of conflict of interest is - correct answer ✔conflict between the manager's duties to
the organization and when managers use their positions of authority for personal gains (Bother b and c)
Which of the following is important to financial management as a direct measure of quality? - correct
answer ✔Decision making
Which of the following elements will NOT profoundly affect the financial situation of a healthcare
organization? - correct answer ✔Decrease in the number of individuals without insurance
According to Rose Dunn, organizing includes which of the following? - correct answer ✔Establishing a
unity of command, departmentalization, specialization (All the above)
The governing body of a healthcare organization is responsible for - correct answer ✔proper
development, utilization, and maintenance of all resources
