Question 15

Question 157 Points

Question 15

Variance analysis is

Option A

a periodic review of the actual expenditures againsts the approved budget to determine compliance

Option B

places the control for the development of the budget in the handes of the shareholders

Option C

requires each manager be responsible for a budget

Option D

All of the above

Question 14

Question 147 Points

Question 14

The two primary business reports are the Balance Sheet and the Income Statement.

True

False

Clear selection

Question 13

Question 137 Points

Question 13

The statement of cash flows is divided into three sections:

Option A

net cash from operations, net cash from expenses, and net cash from inventory

Option B

net cash from operations, net cash from capital and relating financings, and net cash from investments

Option C

net cash from the balance sheet account only

Option D

None of the above

Question 12

Question 126 Points

Question 12

The number of patients expected to required service at your facility is not relevant when preparing a budget.

True

False

Clear selection

Question 11

Question 116 Points

Question 11

The financial statements of the healthcare organization provide the historical perspective on the financial operations of the organization.

True

False

Clear selection

Question 10

Question 107 Points

Question 10

The chart of accounts

Option A

projects patient care revenues based on units of service to be provided

Option B

is a periodic review of the accounts with balances

Option C

is the listing of all line items used in the budget and accounting system to identify specific revenues and expenditures.

Option D

is not required

Question 9

Question 96 Points

Question 9

It is not common to complete a bank reconciliation each month because banks do not provide monthly bank statements.

True

False

Clear selection

Question 8

Question 86 Points

Question 8

Cash and cash equivalents do not include petty cash.

True

False

Clear selection

Question 7

Question 77 Points

Question 7

Break even analysis is:

Option A

the budget mechanism that allows for the determination of the number of units of service that need to be provided to cover the organization's costs.

Option B

is a participatory philosophy of budgeting

Option C

is the level of flexibility provided to unit managers to make decisions

Option D

is never done

Question 6

Question 67 Points

Question 6

An annual budget consists of:

Option A

the annual gains budget and the annual losses budget

Option B

the annual revenue budget and the annual expenditure budget

Option C

the prior year revenue budget and the next year expenditure budget

Option D

All of the above

Question 5

Question 57 Points

Question 5

A cash budget:

Option A

accounts for major capital expenditures

Option B

projects revenue, expenditures, and cash flow on a monthly basis

Option C

projects cash flows only

Option D

is usually completed every ten years

Question 4

Question 47 Points

Question 4

A capital budget:

Option A

projects revenues, expenditures, and cash flow on a monthly basis

Option B

is done once every 15 years

Option C

accounts for the major capital expenditures of the organization and is normally prepared to cover a number of budget years

Option D

None of the above

Question 3

Question 37 Points

Question 3

A budget is:

Option A

management's plan for a future period of time, expressed in formulas

Option B

management's plan for a prior period of time, expressed in dollars.

Option C

management's plan for a future period of time, expressed in dollars.

Option D

the employee's plan for a future period of time, expressed in dollars.

Question 2

Question 26 Points

Question 2

A budget does not need to be balanced.

True

False

Clear selection

Question 17 Points

Question 1

A bank reconciliation:

Option A

is never done because it takes too long

Option B

should only be done annually

Option C

is not a useful tool in accounting

Option D

is the process of ensuring that the accounting records for the checking account agree with the monthly bank statement