Question 1 (5 points)Which of the following is NOT considered an.docx

Question 1 (5 points)
Which of the following is NOT considered an advantage of
organizing as a C corporation:
a) Easy to transfer ownership through shares of stock
b) Owners have limited liability
c) Less costly and less time consuming to set-up relative to
other forms of organization
d) Unlimited life of company that continues in existence after
original owners die or leave the company.
Which of the following does not appear on the balance sheet?
a) Accumulated Depreciation
b) Net Income
c) Liabilities
d) Assets
Which of the following is FALSE regarding capitated payment
third-party arrangements:
a) Under a profit (CVP) analysis, there is no direct linkage
between volume of services provided and revenues
b) Providers have an incentive to reduce costs and reduce
utilization
c) Providers have an incentive to set higher charge rates to
increase revenues
d) Revenue associated with capitated contracts is often called
premium revenue rather than patient service revenue
Which of the following is a FALSE statement regarding accrual
accounting?
a) The revenue recognition principle requires the revenue to be

recognized in the period when they are realized and earned.
This is the period in which the service is rendered.
b) An advantage is that there are no complex accounting rules
and it is closely aligned to accounting for tax purposes
c) The economic event that creates the financial transaction,
rather than the transaction itself, provides the basis for the
accounting entry.
d) Implementation of the matching principle dealing with
expenses creates a problem with long-lived assets such as
buildings and equipment.
Which of the following is NOT considered an expense on the
income statement?
a) Depreciation
b) Notes payable
c) Provision for Bad Debts
d) Salaries and benefits
Which of the following asset is least liquid?
a) Cash
b) Fixed assets (property and equipment)
c) Short-term securities
d) Accounts receivable
Which of the following is considered a fixed cost in the short-
run?
a) Bandages
b) Salaries of full-time permanent staff
c) X-ray film
d) Laboratory Slides
Which of the following is a FALSE statement characterizing

managerial accounting?
a) Focuses on subunits of an entity for internal decision-making
b) Is forward-looking
c) Cost accounting is a subset of managerial accounting
d) Involves identifying, measuring, recording, and
communicating in dollar terms the economic events and status
of an organization.
Which of the following is the CORRECT definition of the
statistics budget which is considered the cornerstone of the
budget process?
a) Combines volume and reimbursement data to develop revenue
forecasts
b) Focuses on costs of providing services including labor and
non-labor components
c) Specifies the patient volume and resource assumptions used
in other budgets
d) Combination of the revenue and expense budget
Which of the following is a FALSE statement concerning
variance analysis?
a) Assists managers identify the factors that cause realized
profits to be different from expected profits.
b) To be most useful, it examines the difference between the
actual, flexible, and static budget.
c) Essential to the managerial control process.
d) Represents the number of years necessary for cash flow to
recover the original investment.
Which of the following is NOT part of an operational plan?
a) Working capital management plan
b) Strategic plan
c) Long-term plan

d) Managerial Accounting Plan
Indicate where the event "paid income taxes" would appear, if
at all, on the statement of cash flows.
a) Operating activities section
b) Investing activities section
c) Financing activities section
d) Does not represent a cash flow
Net income results when:
a) Assets > Liabilities
b) Revenues = Expenses
c) Revenues > Expenses
d) Revenues < Expenses
Which of the following is NOT found in a capital budget?
a) Long-term debt
b) Accounts payable
c) Retained earnings
d) Common stock
The category that is generally considered to be the best measure
of a company's ability to continue as a "going concern" is:
a) Cash flows from operating activities
b) Cash flows from investing activities
c) Cash flow from financing activities
d) Usually different from year to year
Which of the following performance ratios measure profitability
of an organization?
a) Days Cash-on-Hand

b) Return on Equity
c) Long-term Debt to Equity
d) Revenue-per-discharge
Financial statements are the major means of communicating
accounting information to interested parties:
a) True
b) False
In theory, capital budgeting decisions should depend solely on
forecasted cash flows and the opportunity cost of capital. The
decision criterion should not be affected by managers' tastes,
choice of accounting method, or the profitability of other
independent projects.
a) True
b) False
The Affordable Care Act reduces provide payment rates over
the next 10 years. What financial statement and what
component will be most impacted in the short-run?
a) Assets reported in the balance sheet
b) Depreciation reported on the cash flow statement
c) Unrecognized bad debt reported on the income statement
d) Patient revenue reported on the income statement
Which of the following DOES NOT directly reflect a challenge
to revenue cycle performance among healthcare entities today?
a) The complex nature of services billed
b) The aging of the population
c) Improper coding
d) The complex specification for billing practices

Question
1 (5 points)
organ
izing as a C corporation:
a)
Easy to transfer ownership through shares of stock
b)
Owners have limited liability
c)
Less costly and less time consuming to set
-
up relative to other forms of organization
d)
Unlimited life of company that continues in existence after
Question
2 (5 points)
a)
Accumulated Deprec
iation
b)

Net Income
c)
Liabilities
d)
Assets
third
-
party arrangements:
a)
Under a profit (CVP) analysis, there is no direct linkage
between volume of services provided and
revenues
b)
Providers have an incentive to reduce costs and reduce
utilization
c)
Providers have an incentive to set higher charge rates to
increase
revenues
d)
Revenue associated with capitated contracts is often called
premium revenue rather than patient
service revenue

Question 4
(5 points)
accounting?
a)
The revenue recognition principle requires the revenue to be
recognized in the period when they are
realized and earned. This is the period in which the service is
rendered.
b)
An advantage is that there are no complex accounting rules and
it is closely aligned to accounting for
tax purposes
organizing as a C corporation:
a) Easy to transfer ownership through shares of stock
b) Owners have limited liability
c) Less costly and less time consuming to set-up relative to
other forms of organization
d) Unlimited life of company that continues in existence after
a) Accumulated Depreciation
b) Net Income
c) Liabilities

d) Assets
third-party arrangements:
a) Under a profit (CVP) analysis, there is no direct linkage
between volume of services provided and
revenues
b) Providers have an incentive to reduce costs and reduce
utilization
c) Providers have an incentive to set higher charge rates to
increase revenues
d) Revenue associated with capitated contracts is often called
premium revenue rather than patient
service revenue
accounting?
a) The revenue recognition principle requires the revenue to be
recognized in the period when they are
realized and earned. This is the period in which the service is
rendered.
b) An advantage is that there are no complex accounting rules
and it is closely aligned to accounting for
tax purposes

Question 1 (5 points)Which of the following is NOT considered an.docx

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