BHA 4053, Financial Management in Health Care Administration (Part II)

Question 1

A _________ presents summarized revenues and expenses of an organization – resulting in a profit or loss – for a given period in time.

Question 2

In the non-profit industry, the statement of cash flow is divided into cash flow from operations, investing activity, and _________.

Question 3

The primary purpose of the _________ is to roll forward the net assets from the end of the prior period to the current period.

Question 4

The concept of _________ requires that accounting records be constructed in such a manner as to reflect two aspects of each transaction: the change in assets and the change in the source of financing (liabilities).

Question 5

(Cash and cash equivalents + Board-designated funds for capital) / (Estimated future peak debt service)

Question 6

Which of the following is NOT one of the six most sensitive accounts most likely to receive audit adjustments in the financial statements?

Question 7

A _________ presents a snapshot of the financial condition of the health care organization at a single point in time.

Question 8

_________ is the revenue earned on investment of excess funds made by the organization.

Question 9

_________ describes an organization’s ability to use current assets to pay off current liabilities.

Question 10

The concept of _________ requires that all financial transactions are recorded at “cost,” that is, the price paid to acquire any item or good.

Question 11

Explain how it is possible that there could be a conflict between the organization’s administration and its medical staff.

Question 12

Using the balance sheet and statement of operations in Chapter 2, calculate the three bond repayment ratios, and use it to determine the financial condition of the health care organization.

Question 13

If a hospital is not required to prepare a three year strategic plan, what impact would it have on financial and operating outcomes?