Accounting Basics For Healthcare Management! Trivia Quiz

18 Questions | Total Attempts: 521

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Accounting Basics For Healthcare Management! Trivia Quiz

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Questions and Answers
  • 1. 
    The AICPA Audit and Accounting Guide Health Care Entities is considered category b authoritative guidance that can be used by which of the following?
    • A. 

      A business-type government hospital

    • B. 

      A not-for-profit hospital

    • C. 

      A for-profit hospital

    • D. 

      All of the above

  • 2. 
    Which of the following is a true statement regarding a performance indicator?
    • A. 

      All health care organizations are required to report a performance indicator

    • B. 

      Only governmental health care organizations are required to report a performance indicator

    • C. 

      The purpose of reporting a performance indicator is to make it easier to compare the results of operations of not-for-profit health care organizations to those of for-profit health care organizations

    • D. 

      The purpose of reporting a performance indicator is to assist in evaluating the efficiency and effectiveness of a health care organization's operating activites

  • 3. 
    Which of the following is not a correct statement about the statement of cash flows presented by a health organization?
    • A. 

      Governmental health care organizations must report cash flows from operating activities using the direct method

    • B. 

      For-profit and not-for-profit health care organizations may report cash flows from operating activities using either the direct or indirect method

    • C. 

      All health care organizations report acquisition of capital assets in the cash flows from investing activities section of the statement of cash flows

    • D. 

      All of the above are correct statements

  • 4. 
    How should charity service be reported in the operating statement?
    • A. 

      Receivables and revenues should not be reported for these services

    • B. 

      Receivables and revenues should be reported at the regular self-pay amount

    • C. 

      Receivables and revenues should be reported at the regular self-pay amount, less the estimated cost of collection efforts

    • D. 

      None of the above

  • 5. 
    Contractual adjustments are reported as:
    • A. 

      Additions to the cost of providing medical services

    • B. 

      Reductions to receivables and revenue for medical services provided to insured patients

    • C. 

      Reductions to receivables and revenues for charity care medical services

    • D. 

      Contingent liabilities

  • 6. 
    Assets that are set aside under a bond covenant for future debt service payments are reported by a not-for-profit health care organization as:
    • A. 

      Assets limited as to use

    • B. 

      Temporarily restricted net assets

    • C. 

      Restricted for debt service

    • D. 

      Assets held by trustee

  • 7. 
    Fees received by a hospital for a "healthy heart" workshop offered to patients should be reported as:
    • A. 

      Patient service revenue

    • B. 

      Administrative service revenue

    • C. 

      Other revenue

    • D. 

      Nonoperating gains

  • 8. 
    A business-type governmental health care organization would be required to prepare which of the following financial statements?
    • A. 

      Statement of revenues, expenses, and changes in net position

    • B. 

      Statement of net position

    • C. 

      Statement of cash flows

    • D. 

      All of the above

  • 9. 
    Which of the following would be most useful for evaluating the financial profitability of a not-for-profit health care organization?
    • A. 

      Current ratio

    • B. 

      Debt-to-capitalization

    • C. 

      Excess margin

    • D. 

      Debt services coverage

  • 10. 
    According to FASB standards, which of the following entities would not be considered a health care organization? 
    • A. 

      The Heart Research Institute.

    • B. 

      The St. George Hospital.

    • C. 

      The Family Practice Medical Clinic.

    • D. 

      The Northeast Health Maintenance Organization.

  • 11. 
    Which of the following is (are) considered an authoritative source of GAAP for nongovernmental not-for-profit health care entities?
    • A. 

      The AICPA Audit and Accounting Guide Health Care Entities.

    • B. 

      The Healthcare Financial Management Associations’ Financial Accounting and Reporting Manual.

    • C. 

      The FASB Accounting Standards Codification (ASC).

    • D. 

      All of the above are considered GAAP according to the GAAP hierarchy.

  • 12. 
    Which of the following is not a financial statement prepared by nongovernmental not-for-profit health care entities?  
    • A. 

      Statement of changes in net assets.

    • B. 

      Statement of revenues, expenses, and changes in net assets.

    • C. 

      Balance sheet.

    • D. 

      Statement of cash flows.

  • 13. 
    Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payor are reported as:
    • A. 

      Deductions from gross patient revenue in arriving at net patient revenue.

    • B. 

       Disclosures in the notes to the financial statements.

    • C. 

      Either deductions from gross patient revenue or disclosure in the notes, depending on the dollar amount of the adjustments relative to billings.

    • D. 

      Bad debt expense.

  • 14. 
    Charity service and bad debts in a public hospital that follows business-type accounting are:
    • A. 

      Both reported as deductions from gross patient revenue in arriving at net patient revenue.

    • B. 

      Both reported as expenses.

    • C. 

      Reported differently, with charity service disclosed in the notes to the financial statements and bad debts reported as a deduction from revenue.

    • D. 

      Reported differently, with charity service reported as a deduction from gross patient revenue and bad debts reported as an expense.

  • 15. 
    Contractual adjustments are properly characterized as:
    • A. 

      An expense.

    • B. 

      Another financing use.

    • C. 

      A liability.

    • D. 

      A contra revenue.

  • 16. 
    Donated medicines that normally would be purchased by a hospital should be recorded at fair market value and should be credited to:
    • A. 

      Net Patient Service Revenue.

    • B. 

      Other Revenue.

    • C. 

      Nonoperating Gains.

    • D. 

      Deferred Revenues.

  • 17. 
    Financial reporting standards for all hospitals are established by the FASB.
    • A. 

      True

    • B. 

      False

  • 18. 
    Patient service revenues and related receivables exclude charges for charity care services.
    • A. 

      True

    • B. 

      False

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