1. ACA is the abbreviation for what legislation? a. Accountable Care Organizations b. Affordable Care Act c. Activity Based Costing d. Administrative Cost Accounting 2. Which of the following is not a provision that is expected to have a significant impact from the ACA? a. Requirement that all payments for health care be based on quality of services b. Requirement that almost all individuals have insurance coverage c. Establishment of payment mechanisms for bundled payments and value based purchasing system d. Requirement that states create insurance exchanges 3. Which statement is not one of four fundamental accounting statements: a. Statement of Cash Flows b. Balance Sheet c. Contra Asset Sheet d. Statement of Operations 4. All of the following factors contribute to the rising cost of health care except: a. Aging population b. New and returning consumers in the marketplace c. Chronic Disease d. Providers embracing lean Six Sigma and other techniques to deliver better care with less resources 5. All of the following factors could contribute to a decrease in health care costs except: a. Pharmaceuticals going off patent b. Providers using health information technology in robust ways c. Medical technology continuing to develop new systems d. Hospitals overriding physician preference in supplies 6. HIPPA was enacted with the goal of: a. Regulating electronic standards for billing, privacy and reporting b. Promoting electronic data exchange c. Substantially and rapidly increasing EHR adoption d. Creating and expanding the current health care IT infrastructure 7. Which of the following is a basic financial statement? a. Balance Sheet b. Statement of Operations c. Statement of Cash Flows d. All of the above 8. Balance Sheet for a non-profit contains all of the following except: a. Organization's assets b. Organizations liabilities c. Stockholders' equity d. Cash 9. Assets are defined as: a. Long term debt b. Cash, investments, inventory and receivables c. Self-insurance reserves d. Accrued pension 10. Current Liabilities are defined as: a. Financial obligations due within a year b. Cash and cash equivalents c. Patient accounts receivable d. Inventories 11. Net assets are also known as: a. Owners Equity b. Assets - Liabilities c. A & B d. None of the above 12. Gross Patient Service Revenue can be reduced by which of the following? a. Supplies b. Cash c. Bad Debt Expense d. Inventory 13. Other revenue refers to all of the following except: a. Salary and wages b. Appropriations and grants c. Income from investments d. Revenue from contributions 14. Non Current / Long Term Assets are: a. Cash b. Capital Equipment c. Accounts Receivable d. Marketing Expenses 15. Body of the balance sheet does not include: a. Long Term Debt b. Cash c. Cash flows from financing activities d. Current liabilities 16. A _______ presents a summary of revenue and expenses over a period of time: a. Plant property and equipment b. Balance Sheet c. Cash Flow Statement d. Statement of Operations 17. Analyzing financial statements helps a health care organization to: a. Determine if profitable b. Determine the effectiveness in collecting receivables c. a & b d. None of the above 18. Which is the greatest source of hospital revenue: a. Donations b. Patient Care Services c. Investment income d. Parking Garage & Gift Shop 19. Which of the following is an example of an Expense? a. Insurance b. Prepaid Expenses c. Long Term Debt d. Accrued Expenses 20. Which of the following is an example of a Liability? a. Unearned premium revenue b. Notes Payable c. Net Property & Equipment d. A&B 21. Categories of ratios include: a. Liquidity ratios b. Profitability ratios c. Capital Structure ratios d. All of the above 22. Which of the following is an example of an Asset? a. Cash b. Prepaid Expense c. Land d. All of the above 23. Liquidity ratios measure: a. A facility's ability to meet short term obligations, collect receivables and maintain cash position b. Operating revenues per adjusted discharge c. Operating expense per adjusted discharge d. Salary and benefit expense 24. Operating margin ratio measures: a. How dependent the organization is on patient related income b. Profits earned from the organization's main line of business c. How much profit is earned for each dollar invested in assets d. Total operating expenses incurred from providing patient care services 25. Which equation is NOT correct: a. Assets = Liabilities + Owners Equity b. Assets - Liabilities = Owners Equity c. Assets + Owners Equity = Liabilities d. Assets - Owners Equity = Liabilities 26. Which of the following is a standard accounting method used in health care? a. Accrual b. Cash c. Expense d. Asset 27. As discussed in class, which is usually a hospital's greatest expense: a. Depreciation b. Salary & Wages c. Medicine d. Bed Sheets 28. To develop financial statements, transactions a. Must be on a cash basis b. Are recorded according to staff availability c. Focus only on assets d. Have been analyzed and recorded 29. Statement of Operations includes: a. Operating Expenses b. Increase in unrestricted net assets c. a & b d. None of the above 30. An income statement includes: a. Patient Revenue b. Salary Expense c. Income Tax Expense d. All of the above 31. In the accrual accounting method: a. Revenues are recognized when cash is received b. Expenses are recognized when cash is paid out c. Revenues are recognized when revenues are earned d. All of the above 32. Which is NOT an example of a hospital payer: a. Government Payer b. Automated Payer c. Private Payer d. Self Payer TRUE OR FALSE 33. Providers spend a significant amount of time and expense addressing compliance. True or False? 34. Value Based Payment has been a part of Medicare since its inception. True or False? 35. The financial goal of every hospital project is to increase Expenses, decrease Revenues and level out Productivity. True or False? 36. GAAP stands for Generally Accepted Actions Provided. True or False? 37. Non Current Liabilities are financial obligations due within a year. True or False? 38. Net assets section of a balance sheet for not for profits is analogous to the owner and equity on a for profit balance sheet. True or False? 39. The higher a hospital's Current Ratio, the better financial shape it is in. True or False? 40. The Basic Accounting Equation is: assets + liabilities = owners equity. True or False? 41. Assets are defined as probable future economic benefits of an organization. True or False? 42. The rationale for any financial transaction should be either reduce Revenue / increase Expenses / or stabilize Productivity. True or False? 43. In health care the cash accounting method is used. True or False? 44. Under accrual accounting, revenues are recognized when cash is received. True or False? 45. Hospitals generally have low operating margins. True or False? 46. An Accounts Receivable will eventually result in the collection of cash. True or False? 47. The Income Statement answers the question of how to record transactions. True or False? 48. Electronic health record has financial reporting value. True or False? 49. A balance sheet highlights assets, liabilities and resources used. True or False? 50. Some examples of Liquidity Ratios are Operating Margin and Return on Total Assets. True or False? 51. The Current Ratio is = Current Assets / Current Liabilities. True or False? 52. Capital Structure ratios answer the question of how profitable the organization is. True or False