Download New Liberty University BUSI 323 Exam 3 


Download New Liberty University BUSI 323 Exam 3

  1. If an organization’s board of directors were to set aside assets to be used for the replacement of plant and equipment, where would this be reflected on the balance sheet?
  2. Which of the following is a system in which an entity’s assets and liabilities are segregated in the accounting records?
  3. What is the basis for determining how much investment in assets is necessary for a healthcare firm?
  4. What measuring unit reports the effects of all financial transactions in terms of constant purchasing power?
  5. $80,000 on a historical cost valuation basis, $100,000 on a replacement cost basis, and $110,000 on a current market value basis. If you were on OHC’s board, what minimum level of annual cash flow would you require in order to continue operations and proceed with planned significant new investments?
  6. Which of the following is a fundamental premise of accounting that means that transactions of a business enterprise are recognized during the period to which they relate, not necessarily during the periods in which cash is received or paid?
  7. Which of the following represents an attempt to enhance the value of information and exploit the capability of information technology to deliver true value to decision-makers?
  8. It is widely believed that which of the following directly or indirectly controls up to 85% of all healthcare expenditures?
  9. In most years and for most healthcare firms, how is a healthcare firm likely to increase its equity over the course of the year?
  10. Which of the following represents the present method used by accountants?
  11. Which of the following has made many of the reported values in current financial reports meaningless to decision-makers?
  12. Which of the following can still have a sizable influence on a healthcare firm’s profitability, even considering that many payers have fixed-fee-reimbursement schedules?
  13. Which of the following represents the difference between established rates for services and rates billed to special patients such as employees, physicians, and clergy?
  14. Which of the following typically offers more flexibility than an HMO by allowing more provider choice, but it attempts to direct patients to providers with whom it has negotiated special contracts?
  15. If the balance sheet is a snapshot of the organization at a certain date, which of the following can be thought of as a video clip showing the running total of funds generated and expended during the period?
  16. A program in a healthcare firm with a small or negative ROI but a high community need is referred to as which of the following?
  17. Which of the following, with all of its faults, is the basis on which the accounting profession has chosen to value assets and liabilities in most circumstances?
  18. Which of the following represents the difference between the price paid to acquire another entity and the fair market value of the acquired entity’s assets, less any related obligations or liabilities?
  19. On the last day of the accounting period, a donor makes a permanently restricted donation of $1 million. How would this transaction affect the financial statements that will be prepared (vis-à-vis last period’s statements)?
  20. During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan, which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amount of interest due. What is the best way for this transaction to be recorded?
  21. Growth in what industry is inextricably linked to government payment and regulatory policy?
  22. Which of the following is most directly related to strategic financial planning?
  23. Which of the following represents the amortization of assets purchased over a long period, usually many years?
  24. Which of the following provides detail on the organization’s structure, accounting practices, and financial standing?
  25. The Affordable Care Act aimed to increase coverage by providing for an expansion of which of the following for adults with incomes at or below 138% of poverty?
  26. Which convention permits certain transactions to be treated out of accordance with generally accepted accounting principles?
  27. Rates of payment for what type of patients serve as an indirect method of controlling nursing home capacity?
  28. What is net working capital?
  29. Which of the following is the most important long-term financial metric that can be included on a financial dashboard?
  30. Which of the following measures the resource intensity of outpatient services by measuring the number of paid HCPCS codes on each claim?
  31. True or False? Cash and unrestricted net assets should always be equal.
  32. True or False? One useful way to review the validity of a financial plan is to compare the projected financial ratios with historical values.
  33. True or False? While making a strategic plan, a healthcare organization should first see if the plan is financially feasible.
  34. True or False? With successful financial planning, debt can be viewed as the balancing variable between asset growth and profitability.
  35. True or False? If a healthcare provider had no competitors and operated as a monopoly, it could conceivably dictate prices to virtually all payer groups except Medicare and Medicaid.
  36. True or False? Comparative benchmark data are a crucial ingredient to the success of any dashboard reporting system.
  37. True or False? A source of “other operating revenue” on the Ohio State Medical Center financial statements might include income from the investment of unrestricted funds.
  38. True or False? Expense and expenditure may not be equivalent in any given period.
  39. True or False? The statement of operations is similar to, but not identical to, the income statement.
  40. True or False? Healthcare firms can reasonably expect to finance all of their investment needs with debt.


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