#1
Which financial statement provides a snapshot of an organization's financial position at a specific point in time?
Balance sheet
ExplanationIt summarizes assets, liabilities, and equity.
#2
What does the acronym ROI stand for in financial management?
Return on Investment
ExplanationIt measures the profitability of an investment relative to its cost.
#3
Which financial statement reports an organization's revenues and expenses over a specific period?
Income statement
ExplanationIt shows the profitability of a company over a period of time.
#4
What is the formula for calculating Net Income?
Total Revenue - Total Expenses
ExplanationIt represents the profit earned by a company after deducting all expenses from revenue.
#5
Which financial statement provides information about an organization's sources and uses of cash during a specific period?
Cash flow statement
ExplanationIt shows how cash flows in and out of a company over a period.
#6
What financial metric measures an organization's efficiency in using its assets to generate revenue?
Return on Assets (ROA)
ExplanationIt assesses how well assets are utilized to generate profits.
#7
Which of the following is NOT a method for managing financial risk in healthcare organizations?
Leverage
ExplanationLeverage is a financial strategy, not a risk management method.
#8
Which of the following financial ratios measures the ability of a healthcare organization to meet its short-term obligations?
Current Ratio
ExplanationIt indicates the organization's liquidity and ability to pay its short-term debts.
#9
What does the term 'Accounts Receivable Turnover' indicate in healthcare financial management?
The frequency at which accounts receivable are paid off or collected
ExplanationIt measures how quickly receivables are converted into cash or revenue.
#10
Which type of budgeting technique involves making adjustments to the budget based on changes in volume or activity level?
Flexible budgeting
ExplanationIt allows for adjustments to budgeted figures based on changes in activity.
#11
What is the primary goal of capital budgeting in healthcare financial management?
To maximize long-term value
ExplanationIt aims to make investment decisions that maximize returns over the long term.
#12
In healthcare financial management, what is 'Capitation'?
A payment model where providers are paid a fixed amount per patient
ExplanationProviders receive a fixed payment per patient regardless of services provided.
#13
What role does the time value of money play in healthcare financial management?
It affects the timing of cash flows and investment decisions
ExplanationIt considers the impact of time on the value of money, influencing investment decisions.
#14
Which financial analysis tool helps identify the profitability of individual service lines within a healthcare organization?
Service line costing
ExplanationIt allocates costs to specific services to evaluate their profitability.
#15
What role does financial risk management play in healthcare organizations?
To minimize the impact of financial risks on operations
ExplanationIt aims to mitigate potential financial losses.