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

Not-for-profit healthcare entities present a statement of changes in net assets, classifying net assets as with or without donor restrictions per ASC 954.

Question 2

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

Accepted Answer

Average accounts receivable / (Net patient revenue / 365)

Answer

Days in accounts receivable equals average net accounts receivable divided by average daily net patient revenue (net patient revenue divided by 365).

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-2552 (the Hospital Cost Report) is the annual Medicare cost report hospitals submit to their Medicare Administrative Contractor.

Question 4

In healthcare financial reporting, 'contractual adjustments' represent:

Accepted Answer

The difference between gross charges and amounts agreed upon with payers

Answer

Contractual adjustments are the difference between a hospital's gross charges and the negotiated or mandated rates accepted from payers such as Medicare, Medicaid, and commercial insurers.

Question 5

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

Accepted Answer

Operating income / Total operating revenue

Answer

Operating margin equals operating income divided by total operating revenue, measuring core operational profitability excluding non-operating items.

(HAC) Healthcare Accounting Certification Practice Test

(HAC) Healthcare Accounting Certification Practice Test

HAC Healthcare Accounting Financial Reporting & Analysis 2