NDFS 455 Test 2 Quizzes (5-8)
ACA provides a _______________ benefits package:
Minimum
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
Liabilities
Financial obligations due within a year
NPV is calculated using ten steps. True or False?
F
Net asset categories
Permanent Temporary Unrestricted
Operating margin ratio measures:
Profits earned from the organization's main line of business
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
Cash flows from investing activities includes:
Purchase of plant property and equipment
Opportunity cost are revenues gained by forgoing other opportunities. True or False?
F
Sunk Costs
Non-recoverable
Net assets to total assets ratio reflects an organization's ability to repay a loan. True or False?
F
The number of uninsured U.S. citizens rose between 2001 and 2010 from:
36-50million
Future value is determined using
A compound interest method
Liquidity ratios measure:
A facility's ability to meet short term obligations, collect receivables and maintain cash position
Patient-Centered Medical Home is:
A partnership between primary care providers, patients, and families
The component(s) of a capital investment decision are:
A. Determining if the investment is worth while & Determining how to finance the investment
What is the goal of the U.S. health care system?
Access, Cost, Quality
The strength(s) of the NPV analysis are
Answers in dollars, not years Accounts for all cash flows in the project Discounts at the cost of capital
Other revenue
Appropriations and grants, Income from investments, & Revenue from contributions.
Which of the following is a basic financial statement?
Balance Sheet, Statement of Operations, & Statement of Cash Flows
Assets
Cash, investments, inventory, and receivables.
The time value of money refers to
Concept that a dollar received today is worth more than a dollar received in the future
The HITECH Act (2009) was enacted with the goal of:
Creating and expanding the current health care IT infrastructure Promoting electronic data exchange Substantially and rapidly increasing EHR adoption
Body of the statement of cash flows does not include
Current liabilities
Horizontal analysis looks at the percentage change in a line item from one quarter to another. True or False?
F
Analyzing financial statements helps a health care organization to
Determine if profitable Determine the effectiveness in collecting receivables
Trend analysis compares changes over
Each year with the base year
Straight-line depreciation is a method that depreciates an asset a(n)__________________ amount each______________________ until it reaches its salvage value.
Equal, Year
An effective interest rate is the stated annual interest rate of a loan. True or False?
F
Dividends are payments to creditors. True or False?
F
The payback method measures how long it will take to recover____________ investment.
Initial
Compound interest method refers to
Interest is calculated on both the original principle and and on all interest accumulated since the beginning of interest period
Categories of ratios include:
Liquidity, Profitability, and Capital structure.
All of the following factors could contribute to a decrease in health care costs except:
Medical technology continuing to develop new systems
Balance Sheet for a non-profit contains all of the following:
Organization's assets, Organization's liabilities, & Cash Flow
A statement of operations summarizes the organization's total assets, liabilities, and net assets in what time period?
Over a period of time
ACA is the abbreviation for what legislation?
Patient Protection and Affordable Care Act
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
An annuity is a series of equal payments. True or False?
T
Higher debt increases financial risk by magnifying the returns on net asset or equity. True or False?
T
In a simple interest method the principle is the amount invested. True or False?
T
Interest determines how much an amount of money invested today will be worth in the future. True or False?
T
Ratio analysis is the expression of the relationship between two numbers as a single number. True or False?
T
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?
T
The payback method is in years, not dollars. True or False?
T
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
Accountable Care Organizations as part of ACA are:
voluntary
