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financial management for public health
Questions and Answers of
Financial Management For Public Health
From the provider’s perspective, how would you evaluate the common methods of reimbursement?
From the provider’s perspective, what are the implications of value-based programs?
How can outcomes be measured?
If we know that a variance is the result of an uncontrollable price increase for a supply item that we must have, do we need to investigate and make a report regarding the variance? Why or why not?
Will all line items have a volume variance?
Answer the following questions about variance analysis.1. Variances are differences between __________ and __________ revenues or expenses.2. The three factors involved in variance analysis are
How has GAAP for conservatism evolved over time?
Why must financial disclosure include the cost, accumulated depreciation, and net value of fixed assets?
What requirements must be met to record an asset?
When can liabilities be recorded?
What is meant by double-entry accounting?
Which of the following results in a financial transaction for an organization? An organization1. Verbally agrees to a lease contract for office space with the landlord.2. Signs a contract to lease
What five steps are needed to recognize revenue? How are donations or contributions handled?
The South City Golf Course purchased a new golf cart for $18,000 in cash at the beginning of the fiscal year. South City accounts for the golf course using an enterprise fund. It plans on using
The Lauth City Council has appropriated $75,000 to the Parks and Recreation Department for the purchase of supplies. In the first week of the fiscal year, the department manager places an order for
What is meant by a risk/return trade-off?
Short-term debt refers toa. Money that the organization has just borrowed.b. Money that must be repaid at some time in the next 12 months.c. Money that has to be repaid at some time after the next 12
Bills that have been sent out by an organization but not yet collected are referred to as __________.
Amounts that an organization owes to its suppliers, but has not yet paid, are referred to as accounts receivable.a. Bad debts.b. Accounts payable.c. Accrued expenses.
An inventory management system that relies primarily on physical counts of inventory is said to be using thea. Perpetual method.b. Periodic method.c. Warehouse-control method.
Accounts payable are amounts owed by an organization that have not yet been paid. Name two specific types of accounts payable.
Define working capital, net working capital, and working capital management.
What is financial management?
What is the goal of proprietary, for-profit organizations?
What is the focus of decisions in public service organizations?
How large is total federal and state and local government spending compared to the US GDP?
What is an NGO?
What is the role of the long-range plan?
What are the different types of budgets?
How does the basis of accounting affect what is in a budget?
Answer the following questions about methods of accounting.1. On the accrual basis of accounting, revenues and support are recognized when an organization ____ an amount that it is likely to collect,
Select from the choices below to answer the following questions:a. Increaseb. Decreasec. Stay the samed. Cannot tell from the information given1. If the amount of uncollectible school taxes
Performance budgeting is concerned more with reducing costs than with monitoring outcomes. True or false?
Describe zero-based budgeting.
Which of the following is not true about zero-based budgeting?a. Generally costlier to prepareb. Reevaluates all program activities every yearc. Most commonly used budget methodd. Reduces slack in
Many managers simply average historical data to get a forecast of future results. Is that approach adequate?
A carefully done computerized analysis should be sufficient for most forecasts. True or false? Why?
Performance budgets focus on ______ rather than solely on outputs.
What is a cost objective?
What are marginal costs?
Relevant costs are those that change because of the action being considered or undertaken by an organization. Which of the following factors should be considered when determining which costs are
Marginal costs are not equal to variable costs when (indicate all that apply)a. The time frame for a decision is more than 1 year.b. There is a change in fixed costs.c. There is excess capacity.d.
Consider the cost of service delivery for a public service organization. Match the correct term with its definition below.a. Average costb. Full costc. Marginal cost1. The direct cost and the
Select the best available answer to fill the blank.1. We Give Gifts Foundation’s accounting manager prepares reports about the foundation’s grant making, investments, and general administrative
Select the best choice from the following to answer questions 1 and 2.1. An increase in service volume will have the following effects:a. Increase unit variable cost and decrease unit fixed cost.b.
To break even, an organization’s _____________ must equal its _____________.a. Total revenues, fixed costsb. Total revenues, variable costsc. Total revenues, total costsd. Total revenues, total
Answer the following questions about costs.1. Whether a cost is considered to be a direct or indirect cost depends on (select the best choice)a. The cost objective.b. Who is doing the analysis.c. The
Answer the following questions about break-even analysis.1. Break-even analysis for multiple products requires a _____________ approach.2. The contribution margin must be a positive number for the
Camp Hole-in-the-Wall provides children who have chronic medical conditions with 1-week summer vacations. The Camp owns a 500-acre facility in the Berkshire Mountains, where it brings the kids. The
Answer the following questions about the break-even analysis.1. New City Day-care Center (NCDC) operates from Monday to Friday. It has fixed expenses of $5,000 per week and charges each child who
Youth for America had annual total costs of $800,000 at a volume of 2,000 volunteers. The fixed costs for the year were $400,000.1. What are the total variable costs for the year?2. What would the
Doctors Without Borders (DWB) operates health programs around the world. It has a central staff of 100 people who administer its worldwide programs. DWB’s central operation buys and distributes all
If the contribution margin for Independent Lab (IL) stays constant and its fixed costs increase from $8,000 to $12,000, then IL’s break-even quantitya. Increases.b. Decreases.c. Stays the same.
Explain compounding and discounting.
At any interest rate above 0 percent, the future value of an investment will always bea. Less than the original amount invested.b. Greater than the original amount invested.c. Equal to the original
A stream of 60 monthly payments of $1,000 each is an example of a(n) _________.
If the net present value of the cash flows from an investment is greater than zero and you base your decision solely on financial considerations, you should _________ the investment. a. Acceptb.
If compounding changes from quarterly to weekly for a $100 investment earning 8 percent per annum, the future value at the end of 5 years will (select from the answers below)a. Increase.b.
The internal rate of return is the discount rate that sets the _________ value of the _________ equal to the _________ value of the _________.A. Solve using a spreadsheet program such as Excel.B.
If interest rates rise, the prices for outstanding bonds willa. Fall.b. Rise.c. Stay the same
What is the internal rate of return for the stream of cash flows shown below? Period 0 1 2 3 4 Cash Flow $(10,000) 1,000 1,000 1,000 7,000 Total Cash Flow $0
What are the various types of long-term debt?
How are general obligation bonds sold on the primary market?
Why do we use the market interest rate to calculate the price of a bond, rather than the bond’s stated interest rate?
In what ways is a capital lease equivalent to a mortgage?
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