Financial Management Flashcards
6 cards from real CHE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Management flashcards as text
Which financial statement provides a snapshot of an organization's assets, liabilities, and equity at a specific point in time?
Answer: Balance sheet
The balance sheet (statement of financial position) reports an organization's assets, liabilities, and net assets or equity at a specific date.
In hospital finance, 'days cash on hand' measures:
Answer: How many days an organization can operate using only its existing cash and liquid investments
Days cash on hand calculates how long an organization could sustain operations using available cash and short-term investments without any incoming revenue.
A hospital's operating margin is calculated as:
Answer: Operating income divided by total operating revenue
Operating margin = operating income (revenue minus operating expenses) divided by total operating revenue, expressed as a percentage.
Medicare's Diagnosis-Related Group (DRG) payment system reimburses hospitals based on:
Answer: A fixed payment per case based on the patient's diagnosis and procedure
The DRG system pays hospitals a fixed, predetermined amount per inpatient case based on the patient's diagnosis and procedure, regardless of actual costs.
Accounts receivable days (A/R days) in healthcare indicates:
Answer: The average number of days it takes to collect payment after providing services
A/R days measures how long it takes on average to collect payment after a service is rendered — lower A/R days indicate more efficient revenue cycle performance.
A capital budget in healthcare organizations is used to plan for:
Answer: Major long-term investments in equipment, facilities, and technology
The capital budget plans for significant long-term investments in assets like buildings, major medical equipment, and information technology systems.