QUESTION 4 5 points Saved Health can be traded on the market but healthcare can not. True OFalse QUESTION 5 5 points Saved Which of the following statements best describes the revenue cycle? It focuses on cash management. It focuses on inventory management. It focuses on receivables management. It focuses on cash, inventory, and receivables management. 0 It focuses on all activities associated with billing and collecting for services. QUESTION 6 5 points Saved The revenue cycle is composed of: before-service activities at-service activities after-service activities monitoring and reporting activities all of the above activities QUESTION 7 5 points Saved The operating plan focuses on how a business plans to meet the goals and objectives contained in the strategic plan O True False QUESTION 8 5 points Save Answer Which of the following factors influence(s) the estimate of a business's optimal capital structure? The amount of business (inherent) risk Lender/rating agency attitudes Industry averages OThe need to maintain financial flexibility (reserve borrowing capacity) All of the above QUESTION 9 5 points The corporate cost of capital is a blend (weighted average) of the costs of all of a business's financing sources. O True False QUESTION 10 Saved ICER stands for: Institute for Clinical and Economic Review Integrative and Collaborative Education Research Incremental Cost Effectiveness Ratio Incremental Clinical Efficiency Reporting (for JCAHO) QUESTION 11 5 points Saved Long-term debt is defined as having a maturity of more than six months. O True False QUESTION 12 5 points Saved Budgets are used for: planning communication control answers (a) and (b) answers (a), (b), and (c) QUESTION 13 Saved Which of the following techniques is(are) used to monitor a business's receivables? Average collection period Aging schedule Collections budget Answers (a) and (b) Answers (a), (b), and (c) QUESTION 14 5 points Saved To be most effective, budgets must be thought of as financial staff tools True False QUESTION 15 5 points Save Answer Two important keys to successful revenue cycle management are information technology and electronic claims processing True False QUESTION 16 5 points Save Answer Which of the following statements about budgeting is incorrect? In the conventional approach, the prior budget is used as the starting point. In zero-based budgeting, the prior budget is adopted for the coming year with no changes. All organizations use annual budgets, but most also use quarterly (or more frequent) budgets. Out-year budgets are used more for planning purposes than for control. Bottom-up budgets begin at the department level and then are approved by senior management. QUESTION 17 5 points Save Answer Health economic evaluation is defined as: a study that considers both the comparative costs associated with two or more health care interventions, and the comparative clinical effects, measured either in clinical units, health preferences, or monetary benefit True False QUESTION 18 5 points / Saved Which of the following is not part of a business's strategic plan? Mission statement Values statement Goals Capital budget
