#1
Which of the following is NOT a primary goal of financial management in healthcare?
Minimizing patient satisfaction
ExplanationFinancial management aims to optimize resources and efficiency, not hinder patient satisfaction.
#2
What is the role of financial managers in healthcare organizations?
To manage financial resources effectively
ExplanationFinancial managers oversee budgeting, investments, and financial operations to optimize resources.
#3
Which financial statement provides information about a healthcare organization's revenues and expenses over a specific period?
Income statement
ExplanationIncome statement details revenues, expenses, and profit or loss over a set period, reflecting financial performance.
#4
What is the primary focus of financial management in healthcare organizations?
Minimizing expenses
ExplanationFinancial management aims to control costs while optimizing resource allocation and revenue generation.
#5
What is the significance of cash flow management in healthcare organizations?
To ensure there is enough cash to cover expenses
ExplanationCash flow management ensures timely cash inflows and outflows to meet operational needs and financial obligations.
#6
What is the formula to calculate Return on Investment (ROI)?
Net Profit / Total Assets
ExplanationROI measures the profitability of an investment relative to its total assets.
#7
Which financial ratio measures a healthcare organization's ability to meet short-term obligations?
Quick ratio
ExplanationQuick ratio assesses a company's liquidity and ability to pay short-term obligations.
#8
What does the term 'capital budgeting' refer to in financial management?
Budgeting for long-term investments
ExplanationCapital budgeting involves planning and allocating resources for long-term investment projects.
#9
Which financial statement provides a snapshot of a healthcare organization's financial position at a specific point in time?
Balance sheet
ExplanationBalance sheet presents assets, liabilities, and equity at a specific moment, offering a financial snapshot.
#10
Which of the following is a component of working capital?
Accounts receivable
ExplanationWorking capital includes current assets like accounts receivable and current liabilities.
#11
What is the concept of 'time value of money' in financial management?
Money has a different value depending on when it is received or spent
ExplanationTime value of money recognizes that money's worth changes over time due to inflation, interest, and risk.
#12
What is the purpose of financial forecasting in healthcare management?
To accurately predict future financial performance
ExplanationFinancial forecasting helps organizations plan for future financial needs and challenges.
#13
What is the purpose of financial leverage?
To increase profitability
ExplanationFinancial leverage involves using debt to amplify returns and increase profitability.
#14
What is the purpose of cost-benefit analysis in healthcare financial management?
To compare the costs and benefits of projects or investments
ExplanationCost-benefit analysis evaluates the potential return against the costs of a project or investment.
#15
What is the main objective of financial risk management in healthcare?
To minimize the impact of financial uncertainties
ExplanationFinancial risk management aims to identify, assess, and mitigate potential financial threats to ensure stability and sustainability.