Identify the reasons accrual accounting is preferred over cash accounting for reporting business transactions. Check all that apply. It provides a more accurate picture of the businesses operations. TI At 1 It is simple and easy to understand It is similar to income tax reporting It records both revenue and expenses in the actual period they occur Question 3 3.33 pts Any healthcare business must have assets; to acquire assets, the business must raise capital. Capital comes in two basic forms. Select the answer that identifies these forms. Debt and equity Common and preferred stock US savings bonds Bank loans D Question 4 3.33 pts Sort term debts are debts that must be paid within 5 years. True False Question 5 3.33 pts Revenue cycle management is critically important to all healthcare organizations. Revenue cycle management can be described as: A new buzzword. The set of recurring business activities centered around billing and collecting accounts receivable. Cash management. The set of recurring business activities centered around managing the supply chain. Question 6 3.33 pts Identify all of the types of debt a healthcare organization might use. Municipal bond loans from friends of the entity Term loan Bond credit cards Line of credit Check all that apply to the revenue cycle management process: None of the above At-service activities: Documentation In-service activities: Asking patients to sign blank insurance forms so you have the ability to correct billing mistakes without bothering the patient Continuous activities: Monitoring Before service activities: Preservice insurnace verification, precertification and financial counceling. After-service activities: Claims submission and follow-up Question 8 Cash management is not important to a healthcare organization if they do an excellent job of managing the revenue cycle. 3.33 pts True False Previous 3.33 pts Financial statement analysis produces accurate results instead of indicating trends. True False Previous Question 11 3.33 pts Capital investment analyssi involves analyzing ptential expenditures on land, buildings and euipment and deciding whether or not the organization should undertake these investments. True False Previous Next A healthcare organization accounts receivable are growing over time and concern is arising since there has been a decrease in cashflow. Select the best answer for the process of identifying the potential problem and resolving it. Do nothing because over time the insurance companies will eventually pay their bills. The organization should utilize ratio analysis, along with the a series of managerial accounting reports to identify the issues and develop a strategy to improve collections. The organization should utilize their CPA firm, along with the a series of collection agencies to identify the issues and develop a strategy to improve collections Call the FBI since someone is obviously stealing all of your funds. Previous Next Not for profit healthcare entities can use equity financing to raise funds. True False Previous Using ratios to determine profitabiltiy is a financial analysis tool. True False Previous Financial statements may be prepared using different processes. Check off the 2 most commonly used. Accrual accounting Financial accounting Cash accounting Managerial accounting Previous