Chapter 10 Quiz

Question 1

The end result of working capital management is to increase revenues and reduce expenses.

Answer 1

True

Question 2

Physician reimbursement through Medicare will eventually be:

Answer 2

Merit-based reimbursements

Question 3

The chief financial officer (CFO) of a hospital supervises all of the following officers EXCEPT:

Answer 3

The independent auditor

Question 4

“Charges” and actual “prices” refer to the same phenomenon in health care organizations.

Answer 4

False

Question 5

Which of the following is NOT a characteristic of not-of-profit health care organizations?

Answer 5

May participate in political campaigns

Question 6

For-profit health care organizations are usually owned by:

Answer 6

Investors looking to make a profit

Question 7

Capitation shifts the risk of coverage from the insurer to the provider of health care.

Answer 7

True

Question 8

The primary goal of managing accounts receivable is to:

Answer 8

Reduce the collection period for payment for services

Question 9

Charity care is:

Answer 9

Care provided to a patient that the hospital knows cannot pay

Question 10

The type of budget that forecasts cash inflows and outflows for the next fiscal year is called the:

Answer 10

Operating/cash budget