Nurse Manager Exam #1: Financial Management

Suppliers are the individuals or companies who assist in the manufacturing and distribution of all supplies and equipment used in healthcare organizations. They play a crucial role in ensuring that healthcare facilities have access to the necessary resources to provide quality care to patients. Suppliers can provide a wide range of products, including medical equipment, pharmaceuticals, and other essential supplies.

The balance sheet is the correct answer because it is the financial statement that shows the balance of assets to liabilities. It provides a snapshot of a company's financial position at a specific point in time, showing what the company owns (assets), what it owes (liabilities), and the difference between the two (equity). The balance sheet is an essential tool for investors, creditors, and analysts to assess a company's financial health and stability.

The correct answer is "total work divided by total average daily census." This formula calculates the average acuity by dividing the total work done by the total average daily census. This means that the average acuity is determined by the amount of work performed in relation to the number of patients seen on a daily basis.

Civilization is not a basis on which each organization conducts its business. While goals, philosophy, and mission statements are important factors that guide an organization's operations and decision-making, civilization refers to a broader concept that encompasses the development and organization of human society as a whole. It is not specific to individual organizations and does not directly influence their business practices.

Budgeting provides a foundation for managing and evaluating financial performance. By setting financial goals and allocating resources accordingly, budgeting allows organizations to track their actual financial performance against the planned budget. It helps in identifying any deviations or variances and enables management to take corrective actions to ensure financial objectives are met. Budgeting also provides a framework for evaluating financial performance by comparing actual results to the budgeted targets, enabling organizations to assess their financial health and make informed decisions for the future.

The term "consumers" is used to refer to individuals who use healthcare services. This term is commonly used in the healthcare industry to describe the individuals who seek medical care or treatment. It implies that healthcare services are being consumed by these individuals, similar to how goods or services are consumed in other industries. Therefore, "consumers" is the most appropriate term to describe those who use healthcare services.

A cost center is responsible for managing and controlling expenses within an organization. This involves closely monitoring and regulating the costs incurred by the cost center, ensuring that they are in line with the allocated budget. By controlling expenses, a cost center can contribute to the overall financial health of the organization and help in achieving its financial goals. This responsibility includes identifying areas where costs can be reduced or eliminated, implementing cost-saving measures, and ensuring that expenses are justified and necessary.

The statement "to do or be" reveals the mission of an organization. This phrase implies that the organization exists to take action or fulfill a certain purpose. It suggests that the organization is focused on achieving goals or objectives, rather than simply existing for the sake of it. This mission statement emphasizes the importance of being proactive and making a difference in some way.

The chief financial officer (CFO) has the responsibility of planning, control, and decision-making. As a high-ranking executive in an organization, the CFO is responsible for overseeing the financial activities of the company. They are involved in strategic planning, budgeting, financial analysis, and making important financial decisions. The CFO ensures that financial goals are met, financial risks are managed, and financial resources are allocated effectively. They also play a crucial role in providing financial insights and recommendations to support the organization's growth and profitability.

ECOWAS is an example of a regulatory body. The Economic Community of West African States (ECOWAS) was established to promote economic integration and cooperation among its member states in West Africa. It aims to harmonize policies, regulations, and standards in various sectors such as trade, agriculture, transportation, and energy. ECOWAS has the authority to enforce these regulations and ensure compliance among its member states. Therefore, ECOWAS fits the definition of a regulatory body and is the correct answer in this case.