Financial Management Flashcards
7 cards from real TAGME practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management flashcards as text
A GME office is audited and discovers that direct GME payments were used to fund an administrative retreat unrelated to resident education. This is an example of:
Answer: Misuse of restricted federal education funds
Direct GME funds are restricted to costs directly related to graduate medical training; using them for unrelated administrative events constitutes misuse.
Which financial statement would a program administrator review to determine whether the GME department has sufficient cash to cover payroll at the end of the month?
Answer: Cash flow statement
The cash flow statement shows actual cash inflows and outflows, making it the appropriate tool for assessing near-term payroll coverage.
In GME financial planning, 'responsibility center budgeting' means:
Answer: Individual program directors control and are accountable for their own budgets
Responsibility center budgeting assigns financial accountability to individual program directors who manage their own program budgets.
A hospital system is considering consolidating GME administrative services across three programs to reduce overhead. This strategy is best described as seeking:
Answer: Economies of scale
Consolidating services to reduce per-unit administrative costs across multiple programs is a classic example of achieving economies of scale.
A program administrator receives a purchase order for $4,200 in medical textbooks but the approved budget line is $3,000. The correct compliance step is to:
Answer: Seek a budget amendment or supplemental approval before committing funds
Spending in excess of an approved budget line requires prior authorization through a formal amendment process, not retroactive adjustment.
Which of the following best describes the purpose of a 'teaching hospital cost report' submitted to CMS?
Answer: To document allowable costs for Medicare reimbursement including GME payments
The Medicare cost report is used to calculate and document allowable hospital costs, including direct and indirect GME payments from CMS.
A GME administrator is evaluating whether to lease or purchase a new simulation lab. Which financial concept is MOST important in making this decision?
Answer: Net present value (NPV) of each option's cash flows
NPV analysis accounts for the time value of money across all future cash flows for both options, making it the most rigorous tool for lease-vs-buy decisions.