Financial Resource Management in
Healthcare Exam Questions and Answers
Graded A+
Accounting - Correct answer-The measure and recording of events that reflect the
operations, assets, expenses, and other financing of an organization.
Breakeven Analysis - Correct answer-Determines the point when the investment in
the project will generate a positive return.
Business Manager or SBU Manager - Correct answer-The manager responsible for
the finance function in a small healthcare organization, such as a medical practice
with one or a few clinicians.
Call Provision - Correct answer-Gives the issuer the right to redeem the bonds
before maturity under specified terms.
A business will call a bond issue and refund it if interest rates fall sufficiently after
the bond has been issued.
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,Capital Investment Analysis - Correct answer-Involves analyzing potential
expenditures on land, buildings, and equipment and deciding whether or not the
organization should undertake those investments.
4 Steps:
1. Estimate the expected cash flows.
2. Assess the riskiness of those flow.
3. Estimate the appropriate opportunity cost of capital.
4. Determine the project's profitability and breakeven characteristics.
Capital Structure - Correct answer-The business's mix of debt and equity financing,
often expressed as the percentage of debt financing.
Compounding - Correct answer-The process of determining the future value of a
current cash flow or series of flows.
Comptroller - Correct answer-Someone who is responsible for accounting and
reporting activities. The ________ directly manages specific functions, such as
patient accounts manager.
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, Cost of Debt - Correct answer-The interest that is paid in addition to the principal
that is borrowed.
Debt Contract - Correct answer-A legal document that spells out the rights and
obligations of both lenders and borrows.
Discounting - Correct answer-The process of finding the present value of a future
cash flow or series of flows.
Discounted Cash Flow Analysis - Correct answer-Uses time Value of Money
techniques to estimate the value of an investment's expected cash flows.
Equity - Correct answer-The sum of assets.
Floating Rate - Correct answer-The rate changes over time as interest rates in the
economy rise and fall.
For-Profit Corporation - Correct answer-A legal business entity that is separate and
distinct from its owners and managers.
Health Care Finance - Correct answer-Refers to the accounting and financial
management principles and practices used within healthcare organizations to
ensure the financial well-being of the enterprise.
1. Micro:
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Healthcare Exam Questions and Answers
Graded A+
Accounting - Correct answer-The measure and recording of events that reflect the
operations, assets, expenses, and other financing of an organization.
Breakeven Analysis - Correct answer-Determines the point when the investment in
the project will generate a positive return.
Business Manager or SBU Manager - Correct answer-The manager responsible for
the finance function in a small healthcare organization, such as a medical practice
with one or a few clinicians.
Call Provision - Correct answer-Gives the issuer the right to redeem the bonds
before maturity under specified terms.
A business will call a bond issue and refund it if interest rates fall sufficiently after
the bond has been issued.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Capital Investment Analysis - Correct answer-Involves analyzing potential
expenditures on land, buildings, and equipment and deciding whether or not the
organization should undertake those investments.
4 Steps:
1. Estimate the expected cash flows.
2. Assess the riskiness of those flow.
3. Estimate the appropriate opportunity cost of capital.
4. Determine the project's profitability and breakeven characteristics.
Capital Structure - Correct answer-The business's mix of debt and equity financing,
often expressed as the percentage of debt financing.
Compounding - Correct answer-The process of determining the future value of a
current cash flow or series of flows.
Comptroller - Correct answer-Someone who is responsible for accounting and
reporting activities. The ________ directly manages specific functions, such as
patient accounts manager.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Cost of Debt - Correct answer-The interest that is paid in addition to the principal
that is borrowed.
Debt Contract - Correct answer-A legal document that spells out the rights and
obligations of both lenders and borrows.
Discounting - Correct answer-The process of finding the present value of a future
cash flow or series of flows.
Discounted Cash Flow Analysis - Correct answer-Uses time Value of Money
techniques to estimate the value of an investment's expected cash flows.
Equity - Correct answer-The sum of assets.
Floating Rate - Correct answer-The rate changes over time as interest rates in the
economy rise and fall.
For-Profit Corporation - Correct answer-A legal business entity that is separate and
distinct from its owners and managers.
Health Care Finance - Correct answer-Refers to the accounting and financial
management principles and practices used within healthcare organizations to
ensure the financial well-being of the enterprise.
1. Micro:
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