HAC Healthcare Accounting Financial Reporting & Analysis 2

Question 1

Under ASC 954, which financial statement is unique to not-for-profit healthcare entities compared to for-profit hospitals?

Accepted Answer

Statement of changes in net assets

Answer

Statement of cash flows

Answer

Income statement

Answer

Balance sheet

Question 2

A hospital's days in accounts receivable is calculated as:

Accepted Answer

Average accounts receivable / (Net patient revenue / 365)

Answer

Net patient revenue / Average accounts receivable

Answer

Gross charges / 365

Answer

Net patient revenue x 365 / Total assets

Question 3

Which Medicare cost report form do hospitals use to report cost and charge data to CMS annually?

Accepted Answer

Form CMS-2552

Answer

Form CMS-1450

Answer

Form UB-04

Answer

Form CMS-855A

Question 4

In healthcare financial reporting, 'contractual adjustments' represent:

Accepted Answer

The difference between gross charges and amounts agreed upon with payers

Answer

Bad debt write-offs for uninsured patients

Answer

Government penalties for billing errors

Answer

Discounts given to hospital employees

Question 5

A healthcare organization's operating margin is best defined as:

Accepted Answer

Operating income / Total operating revenue

Answer

Net income / Total revenue

Answer

EBITDA / Net patient revenue

Answer

Net patient revenue / Total assets

Question 6

Under GASB 34, a governmental hospital must present which primary financial statements?

Accepted Answer

Statement of net position, statement of revenues/expenses/changes in net position, and cash flow statement

Answer

Balance sheet, income statement, and statement of changes in equity

Answer

Fund financial statements only

Answer

Statement of activities and statement of financial position

Question 7

Which ratio measures a hospital's ability to cover its long-term debt obligations from operations?

Accepted Answer

Debt service coverage ratio

Answer

Current ratio

Answer

Days cash on hand

Answer

Return on equity