Question 1

The future value formula to compound at intervals more frequent than annual is:

Options :

A : FV = PV + (1 + i/m) n*m

B : FV = PV * (1 + i/m) n-m

C : FV = PV - (1 + i*m) n/m

D :

FV = PV * (1 + i/m) n*m

(Where i= annual interest rate, m=number of times /year that compounding occurs and n= number

of years)

Answer: D

Question 2

By subtracting contractual allowances and charity care discounts from gross patient accounts

receivables, what remains is:

Options :

A :

Patients accounts payable

B : Patients accounts receivable

C : Patients accounts bill

D :

Patients cash income

Answer: B

Question 3

Which measure a facility’s ability to meet short-term obligations, collect receivables and maintain a

cash position?

Options :

A : Benchmarking

B : Cash adjustments

C :

Quick ratio

D : Liquidity ratios

Answer: D

Question 4

Which of the following is NOT the step in expense variance?

Options :

A : Identify the amount of variance due to fixed costs

B : Develop a flexible expense budget

C : Calculate actual volume for each expense

D : Calculate the expense variance due to changes in volume and other factors.

Answer: C

Question 5

In addition to the interest rate on a line of credit, financial institutions ale also compensated through

either:

Options :

A : Commitment fees

B : Compensating balance

C :

Both A & B

D : Neither A nor B

Answer: C

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