1.) True or false? Profitability refers to revenues earned and expenses earned. Investment analysis is concerned with cash flows.

2.) True or false? All third party payers are private insurance companies.

3.) True or false? Charity care is reported in the notes for not-for-profit health care organizations, but revenues and expenses are not recorded in the operating statement.

4.) True or false? Not all excess cash should be invested in higher earning assets; although this reduces return on the cash, it also reduces costs that arise from not having cash on hand (such as late fees).

5.) True or false? The net present value method determines whether or not a project meets or exceeds a desired hurdle rate.

6.) True or false? The detection of fraud and embezzlement is the primary purpose of audits.

7.) True or false? Because auditors assess the internal controls of the organization, audited financial statements signify that fraud within the organization is not a concern.

8.) True or False? An organization can use any month as its fiscal year end.