NDFS 455 Quiz FC for Exam 2

The payback method is in years, not dollars. True or false?

True

An effective interest rate is the stated annual interest rate of a loan. True or false?

False

Horizontal analysis looks at the percentage change in a line item from one quarter to another. True or false?

False

NPV is calculated using ten steps. True or false?

False

Net assets to total assets ratio reflects an organization's ability to repay a loan. True or false?

False

Opportunity cost are revenues gained by forgoing other opportunities. True or false?

False

Liabilities are defined as:

Financial obligations due within a year

Operating margin ratio measures:

Profits earned from the organization's main line of business

Cash flows from investing activities includes:

Purchase of plant property and equipment

The number of uninsured U.S. citizens rose between 2001-2010 from:

36 million to 50 million

Liquidity ratios measure:

A facility's ability to meet short term obligations, collect receivables, and maintain cash position

Which of the following is the goal of the U.S. health care system?

A. Access B. Cost C. Quality *D. All of the above*

The strength(s) of the NPV analysis are:

A. Answers in dollars, not years B. Accounts for all cash flows in the project C. Discounts at the cost of capital *D. All of the above*

Which of the following is a basic financial statement?

A. Balance Sheet B. Statement of Operations C. Statement of Cash Flows *D. All of the above*

The HITECH Act (2009) was enacted with the goal of:

A. Creating and expanding the current health care IT infrastructure B. Promoting electronic data exchange C. Substantially and rapidly increasing EHR adoption *D. All of the above*

Analyzing financial statements helps a health care organization to:

A. Determine if profitable B. Determine the effectiveness in collecting receivables *C. a & b* D. None of the above

The component (s) of a capital investment decision are:

A. Determining if the investment is worth while B. Costs of investing C. Determining how to finance the investment *D. Both a & c*

Categories of ratios include:

A. Liquidity ratios B. Profitability ratios C. Capital structure ratios *D. All of the above*

Net assets do not include one of the following categories:

Belated (does include unrestricted, temporary, and permanent)

Time value of money refers to

Concept that a dollar received today is worth more than a dollar received in the future

Body of the statement of cash flows does not include:

Current liabilities (does include: cash flows from operating activities, investing activities, and financing activities)

Trend analysis compares changes over:

Each year with the base year

ACA is the abbreviation for what legislation?

Patient Protection and Affordable Care Act

Compound interest method refers to:

Interest is calculated on both the original principle and on all interest accumulated since the beginning of interest period

Which of the following is not a provision that is expected to have a significant impact from the ACA?

Requirement that all payments for health care be based on quality of services

Other revenue refers to all the following except:

Salary and wages

An annuity is a series of equal payments. True or false?

True

Higher debt increases financial risk by magnifying the returns on net asset or equity. True or false?

True

In a simple interest method the principle is the amount invested. True or false?

True

Interest determines how much an amount of money invested today will be worth in the future. True or false?

True

Ratio analysis is the expansion of the relationship between two numbers as a single number. True or false?

True

Salvage value is the amount of cash to be received when an asset is sold, usually at the end of its useful life. True or false?

True

Present value of an annuity refers to:

What a series of equal payment in the future is worth today taking into account time value of money

Vertical analysis answers which general question?

What percentage of one line item is another line item

Capital appreciation is:

When an investment is worth more when it is sold than when it was purchased

The statement of changes in net assets includes:

Why there was a change from one year to the next in the entire net asset section of the balance sheet

Present value (PV) refers to:

Worth today of future payment

Future value is determined using:

a compound interest method

Patient-Centered Medical Home is:

a partnership between primary care providers, patients, and families

Assets are defined as:

cash, investments, inventory, and receivables

Straight-line depreciation is a method that depreciates an asset a(n) ______________ amount each __________ until it reaches its salvage value

equal, year

Dividends are payments to creditors. True or false?

false

The payback method measures how long it will take to recover ______ investment

initial

All of the following factors could contribute to a decrease in health care costs except:

medical technology continuing to develop new systems (does contribute: pharmaceuticals going off patent, providers using health information technology in robust ways, and hospitals overriding physician preference in supplies)

ACA provides a _____________ benefits package

minimum

Sunk costs are:

not recoverable

A statement of operations summarizes the organization's total assets, liabilities, and net assets in what time period?

over period of time

All of the following factors contribute to the rising cost of health care except:

providers embracing lean Six Sigma and other techniques to deliver better care with less resources (does contribute: aging population, chronic disease, and new and returning consumers in the marketplace)

Balance Sheet for non-profit contains all of the following except:

stockholder's equity (contains: cash flow, organization's assets & liabilities)

Accountable Care Organizations as a part of ACA are:

voluntary