MHA 706 Financial Management Midterm – Questions & Verified Answers Healthcare finance ✔️ans - the accounting and financial management principles and practices used within health services organizations to ensure the financial well-being of the enterprise Healthcare sector ✔️ans - consists of a diverse collection of industries that involve the healthcare of the population Provider ✔️ans - an organization that provides healthcare services Business ✔️ans - maintains financial viability by selling goods or services Pure charity ✔️ans - relies solely on contributions Finance ✔️ans - consists of both accounting and financial management functions Primary role of finance ✔️ans - to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise Accounting ✔️ans - concerns the recording of economic events that reflect the operations, resources, and financing of an organization Financial management ✔️ans - provides the theory, concepts, and tools necessary to help managers make better financial decisions Planning and budgeting ✔️ans - involves evaluating the financial effectiveness of current operations and planning for the future Financial reporting ✔️ans - recording and reporting to outsiders the results of operations and current financial status Capital budgeting ✔️ans - the process of analyzing and choosing new fixed assets 1 / 2
Financing decisions ✔️ans - all organizations must raise capital to buy the assets necessary to support operations Working capital management ✔️ans - a managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other Contract management ✔️ans - the process of managing contract creation, execution and analysis to maximize operational and financial performance at an organization, all while reducing financial risk Financial risk management ✔️ans - the practice of economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk Four c's ✔️ans - costs, cash, capital, and control Cost ✔️ans - a resource use associated with providing or supporting a specific service Chief financial officer ✔️ans - typically reports directly to the ceo Chief executive officer ✔️ans - responsible for all finance activities within the organization Comptroller ✔️ans - responsible for accounting and reporting activities Treasurer ✔️ans - responsible for then acquisition and management of capital Patient accounts manager ✔️ans - reports to the comptroller Cash manager ✔️ans - reports to treasurer Business practice manager ✔️ans - in small health services organizations, the finance responsibilities are combined and assigned to this person Hospitals ✔️ans - provide diagnostic and therapeutic services to individuals who require more that several hours of care
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