Nursing Home Administration - Finance And Business Quiz

100 Questions | Total Attempts: 56

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Nursing Home Administration - Finance And Business Quiz

Learning to manage the organization's finances


Questions and Answers
  • 1. 
    The staff person responsible for assuring that the business office runs smoothly is, in the final analysis, ____.
    • A. 

      Corporate finance director

    • B. 

      The administrator

    • C. 

      Business office staff

    • D. 

      Facility treasurer

  • 2. 
    In general, the ownership patterns for U.S. nursing facilities in 2008 ____.
    • A. 

      Were unstable

    • B. 

      Varied widely from state to state

    • C. 

      Were somewhat stable

    • D. 

      Were unchanged from 89 years earlier

  • 3. 
    Generating reports on the financial standing of the nursing facility is generally assigned to ____.
    • A. 

      The accountant

    • B. 

      The director of financial

    • C. 

      The administrative assistant

    • D. 

      The chief financial officer (CFO)

  • 4. 
    Responsibility and blame for overspending in the department of nursing and in food services is typically assigned by the owners to the ____.
    • A. 

      Director of nursing and director of food services

    • B. 

      Director of nursing and the dietitian

    • C. 

      Chief financial officer

    • D. 

      Administrator

  • 5. 
    A set of records that lists each monetary transaction of the facility is normally referred to as ____.
    • A. 

      The books

    • B. 

      Financial statements

    • C. 

      Monetary records

    • D. 

      Income and revenue statement

  • 6. 
    The primary purpose of the Generally Accepted Accounting Principles is to ____.
    • A. 

      Guarantee honesty among providers

    • B. 

      Maximize comparability of financial statements of different organizations

    • C. 

      Create a single view among financial managers

    • D. 

      Protect the owners

  • 7. 
    An owner who takes unrecorded cash from the facility daily cash intake to purchase a laptop for his daughter to use at college has violated the ____ concept.
    • A. 

      Consistency

    • B. 

      Entity

    • C. 

      Time period

    • D. 

      Objective evidence

  • 8. 
    Instructing the financial manager to record assets at current market value and to not record patient bills expected to become uncollectible violates the ____ concept.
    • A. 

      Entity

    • B. 

      Good faith

    • C. 

      Time period

    • D. 

      Consistency

  • 9. 
    Telling the accountant not to record overtime paid from the cash box to employees working weekends is violating the ____ concept.
    • A. 

      Ongoing concern

    • B. 

      Entity

    • C. 

      Full disclosure

    • D. 

      Time period

  • 10. 
    Directing the accountant to move from a January 1 date to a June 30 fiscal year date in order to minimize the negative image possibly created by an anticipated loss violates the ____ concept.
    • A. 

      Ongoing concern

    • B. 

      Time period

    • C. 

      Conservation

    • D. 

      Entity

  • 11. 
    Allowing the bookkeeper to destroy vouchers showing payments made for meals to employees once these are recorded may violate the ___ concept.
    • A. 

      Objective evidence

    • B. 

      Consistency

    • C. 

      Time period

    • D. 

      Entity

  • 12. 
    Pieces of paper indicating money owed to or by the facility, bank statements, and similar pieces of paper or its electronic equivalent are known as ____.
    • A. 

      Paper trail

    • B. 

      Source documents

    • C. 

      Bill of lading

    • D. 

      Records

  • 13. 
    An administrator who instructs the accountant to begin reporting facility finances by recording all expenditures and all receipts as they actually occur has decided to use the ____ system of accounting.
    • A. 

      Cash

    • B. 

      Implied

    • C. 

      No-fault

    • D. 

      Accrual

  • 14. 
    It is difficult to recognize items such as depreciation and prepaid insurance in the ____ system of accounting.
    • A. 

      Accrual

    • B. 

      Simplified

    • C. 

      Cash

    • D. 

      Income and expense

  • 15. 
    An administrator directing the accountant to record revenues when they are earned and expenses when they are incurred by matching revenues and expenses for each time period is the advantage of the ____ system of accounting.
    • A. 

      Accrual

    • B. 

      Cash

    • C. 

      Simplified

    • D. 

      Advanced

  • 16. 
    Allowing the facility to accurately measure revenues earned after expenses have been paid or losses incurred by matching revenues and expenses for each time period is the advantage of the ____ system of accounting.
    • A. 

      Acccrual

    • B. 

      Cash

    • C. 

      Income and loss

    • D. 

      Advanced electronic

  • 17. 
    A summary of the nursing home's financial well-being within a time period is normally referred to as ____.
    • A. 

      The financial statements

    • B. 

      Profit and loss

    • C. 

      Notes to changes in financial condition

    • D. 

      Statements of change

  • 18. 
    If the administrator asked the bookkeeper for a list containing every account in the facility, the bookkeeper would hand the administrator the ____.
    • A. 

      Books

    • B. 

      Financial Report

    • C. 

      Chart of accounts

    • D. 

      General journal

  • 19. 
    Things owned by the facility are normally referred to as ____.
    • A. 

      Debentures

    • B. 

      Assets

    • C. 

      Possessions

    • D. 

      Tangibles

  • 20. 
    Things owed by the facility, its obligations, are normally referred to as ____.
    • A. 

      Capital

    • B. 

      Unpaid bills

    • C. 

      Invoices

    • D. 

      Liabilities

  • 21. 
    Money invested in the facility, also known as the facility's net worth, is normally referred to as ____.
    • A. 

      Stock

    • B. 

      Collateral

    • C. 

      Capital

    • D. 

      Income stream

  • 22. 
    If the administrator asks the accountant for the journals, the administrator wants to look at ____.
    • A. 

      The original entries

    • B. 

      The assets

    • C. 

      The debits

    • D. 

      Current summaries of income and outgo

  • 23. 
    The new accountant informs the administrator that to simplify things, he has incorporated all purchases that will be paid for the next few years into the accounts payable journal.  The administrator should ____.
    • A. 

      Compliment the accountant

    • B. 

      Ask for last year's books to be conformed to the new system

    • C. 

      Begin a search for a new accountant

    • D. 

      As that these purchases be transferred to the general journal

  • 24. 
    Making a debit and a credit entry for each transaction is known as the ____ system of accounting.
    • A. 

      Single/double

    • B. 

      Systematic

    • C. 

      Alternate

    • D. 

      Double-entry

  • 25. 
    Under double-entry bookkeeping, when a bill is sent to Ms. Jones for $3,000 for the past month's care, the bookkeeper would normally record $3,000 in the debit column as an increase in assets and ____.
    • A. 

      Record $3,000 on the credit side as an increase in revenue

    • B. 

      Record $3,000 as received

    • C. 

      Wait for the payment before entering further data

    • D. 

      Enter an estimate of when the bill will be paid

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