Click here to have a similar A+ quality paper

Order Now

1. | Question : | (TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):| | | | Income statement | | | | Statement of retained earnings | | | | Balance sheet | | | | Statement of cash flows | | | | Report of management | 2. | Question : | (TCO 2) Which method(s) of financial reporting does (do) not recognize the impact of changes in purchasing power? | | | HC| | | | HC-GPL | | | | CV | | | | CV-GPL | | | | Both A and C | | | | B and D | | | | A and B | 3. | Question : | (TCO 2) The _____ is a way for organizations to improve the collection and communication of financial and operating information. | | | Performance dashboard | | | | Financial bottom-line | | | | Holistic perspective | | | | Performance perspective| 4. | Question : | (TCO 2) What should be a firm’s primary long-term financial objective? | | | Profit growth | | | | Debt growth | | | | Asset growth | | | | Equity growth | 5. | Question : | (TCO 2) What are the major reasons for accrual accounting? | 6. | Question : | (TCO 2) What is an accounting entity?| 7. | Question : | (TCO 2) The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so? | 8. | Question : | (TCO 2) What is the basic accounting equation? | Q 1. | Question : | (TCO 3) The breakeven point occurs where: | | | total fixed costs and total revenue intersect | | | | total costs and total revenue intersect | | | | total profit margin and total costs intersect | | | | total variable costs and total revenue intersect | | | | total revenue outpaces total avoidable fixed costs | 2. | Question : | (TCO 3) Increasing marginal volume for cost payers makes economic sense if:| | | Cost payers account for 100 percent of your present volume and fixed costs are high. | | | | Bad debts are low. | | | | Fixed costs are high and present cost payer volume is small. | | | | All of the above. | 3. | Question : | (TCO 3) Your controller has told you that the marginal profit of DRG 209 (major joint procedure) for a Medicare patient exceeds the marginal profit for an average charge patient. Why might this occur? | | | High fixed costs of treatment | | | | Low Medicare payment | | | | High prices | | | | Low prices | 4. | Question : | (TCO 3) Estimate the total variable cost (i.e., including both routine and ancillary) per MSDRG 505 using the departmental cost/charge ratios and variable cost percentages. (Your answer might be slightly different due to rounding. Pick the closest.) | | | $5,213 | | | | $3,892 | | | | $7,613 | | | | $5,452 | | | | $8,070 | 5. | Question : | (TCO 3) David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question. | Square Footage | Direct Expenses | Lab Tests | Utilities| | 200,000 | | Administration | 2,000 | 500,000 | | Laboratory | 2,000 | 625,000 | | Day-op Suite | 3,000 | 1,400,000 | 4,000 | Cystoscopy | 1,500 | 350,000 | 500 | Endoscopy | 1,500 | 300,000 | 500 | Total | 10,000 | 3,375,000 | 5,000 | Based on the scenario above, what are the Cystoscopy Department’s total expenses? | 6. | Question : | (TCO 3) Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: Average Charge | $15,000 | | Average LOS | 5 Days | | Routine Charge| $3,600 | Cost/Charge 0.80 | Variable Cost % 60 | Operating Room | 2,657 | 0.80 | 80 | Anesthesiology| 293 | 0.80 | 80 | Lab | 1,035 | 0.70 | 30 | Radiology | 345 | 0.75 | 50 | Medical Supplies | 4,524 | 0.50 | 90 | Pharmacy | 1,230 | 0.50 | 90 | Other Ancillary | 1,316 | 0.80 | 60 | Total Ancillary | $11,400 | 0.75 | 50 | Estimate the variable cost per MS-DRG 470 using the departmental cost/charge ratios and variable cost percentages. | 7. | Question : | (TCO 3) What is the break-even equation and discuss the break-even equatio

1. | Question : | (TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):|

|

| | Income statement |

| | | Statement of retained earnings |

| | | Balance sheet |

| | | Statement of cash flows |

| | | Report of management |

2. | Question : | (TCO 2) Which method(s) of financial reporting does (do) not recognize the impact of changes in purchasing power? |

|

| HC|

| | | HC-GPL |

| | | CV |

| | | CV-GPL |

| | | Both A and C |

| | | B and D |

| | | A and B |

3. | Question : | (TCO 2) The _____ is a way for organizations to improve the collection and communication of financial and operating information. |

| | Performance dashboard |

| | | Financial bottom-line |

| | | Holistic perspective |

| | | Performance perspective|

4. | Question : | (TCO 2) What should be a firm’s primary long-term financial objective? |

| | Profit growth |

| | | Debt growth |

| | | Asset growth |

| | | Equity growth |

5. | Question : | (TCO 2) What are the major reasons for accrual accounting? |

6. | Question : | (TCO 2) What is an accounting entity?|

7. | Question : | (TCO 2) The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so? |

8. | Question : | (TCO 2) What is the basic accounting equation? |

Q 1. | Question : | (TCO 3) The breakeven point occurs where: |

| | total fixed costs and total revenue intersect |

| | | total costs and total revenue intersect |

| | | total profit margin and total costs intersect |

| | | total variable costs and total revenue intersect |

| | | total revenue outpaces total avoidable fixed costs |

2. | Question : | (TCO 3) Increasing marginal volume for cost payers makes economic sense if:|

|

| Cost payers account for 100 percent of your present volume and fixed costs are high. |

| | | Bad debts are low. |

| | | Fixed costs are high and present cost payer volume is small. |

| | | All of the above. |

3. | Question : | (TCO 3) Your controller has told you that the marginal profit of DRG 209 (major joint procedure) for a Medicare patient exceeds the marginal profit for an average charge patient. Why might this occur? |

| | High fixed costs of treatment |

| | | Low Medicare payment |

| | | High prices |

| | | Low prices |

4. | Question : | (TCO 3) Estimate the total variable cost (i.e., including both routine and ancillary) per MSDRG 505 using the departmental cost/charge ratios and variable cost percentages. (Your answer might be slightly different due to rounding. Pick the closest.) |

| | $5,213 |

| | | $3,892 |

| | | $7,613 |

| | | $5,452 |

| | | $8,070 |

5. | Question : | (TCO 3) David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question. | Square Footage | Direct Expenses | Lab Tests |

Utilities| | 200,000 | |

Administration | 2,000 | 500,000 | |

Laboratory | 2,000 | 625,000 | |

Day-op Suite | 3,000 | 1,400,000 | 4,000 |

Cystoscopy | 1,500 | 350,000 | 500 |

Endoscopy | 1,500 | 300,000 | 500 |

Total | 10,000 | 3,375,000 | 5,000 |

Based on the scenario above, what are the Cystoscopy Department’s total expenses? |

6. | Question : | (TCO 3) Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: Average Charge | $15,000 | |

Average LOS | 5 Days | |

Routine Charge| $3,600 | Cost/Charge 0.80 | Variable Cost % 60 |

Operating Room | 2,657 | 0.80 | 80 |

Anesthesiology| 293 | 0.80 | 80 |

Lab | 1,035 | 0.70 | 30 |

Radiology | 345 | 0.75 | 50 |

Medical Supplies | 4,524 | 0.50 | 90 |

Pharmacy | 1,230 | 0.50 | 90 |

Other Ancillary | 1,316 | 0.80 | 60 |

Total Ancillary | $11,400 | 0.75 | 50 |

Estimate the variable cost per MS-DRG 470 using the departmental cost/charge ratios and variable cost percentages. |

7. | Question : | (TCO 3) What is the break-even equation and discuss the break-even equatio

Click here to have a similar A+ quality paper

Order Now