FACHE Finance Exam with Complete
Solutions
Controllership - Correct Answers-Transaction Accounting
Financial Accounting
Managerial Accounting
Goal Setting and Budgeting
Financial Mangement - Correct Answers-Financial Planning
Pricing Clinical Services
Financial Structures
Securing and Managing Liquid Assets
Managing Multi Corporate Accounting
Auditing - Correct Answers-Internal Audits
Compliance Review
External Audit
Continuous Improvement of the Accounting & Finance Functions - Correct Answers-
Stakeholder Satisfaction
Improve Performance
Reporting Financial Information (Standard for HCOs) - Correct Answers-Balance Sheet
Income or Profit-and-Loss Statement
Statement of sources and uses of funds
Statement of changes in fund balances
Freedom of Information Act (FOIA) - Correct Answers-Provides public the right to
request access to records from any federal agency. pubic should have general access
to information
General Ledger - Correct Answers-Technically, the record of all the firm's transactions;
the term often refers to the fixed and collective assets, such as depreciation, that must
be allocated to operational functions
Not-for-profit HCO have substantial obligations to report their financial activities through
the the IRS Form 990 mainly for - Correct Answers-Community Benefit and to Justify
Tax Exempt Status
, Net Revenue - Correct Answers-Income actually received as opposed to that initially
posted; equal to gross revenue - adjustments for bad debts, charity, and discounts to
third parties
Gross Revenue - Correct Answers-An entry into the patient to the patient ledger of the
charge for a specific healthcare service; no longer a meaningful measure
Bad Debts - Correct Answers-Cost for patients who are unable to pay for care
Charity Care - Correct Answers-Care given to the needy without expectation of payment
Operating Budget - Correct Answers-The aggregate of accountability-center
expenditure budgets and the corporate revenue budget
budgets must forcast - Correct Answers-At least 18 months into the future. well-run
institutions budget a second or event third year in the yearly budget cycle
Operating Budget includes - Correct Answers-Accountability-unit budgets by report
period and kind of resource (cost are negotiated with the other five dimensions of
financial scorecards)
Aggregate expenditures budgets, or "roll ups," that summarize larger sections of the
organization that parallel the accountability hierarchy (similar experience aggregates are
made of the goals for the other operational dimensions)
Revenue budgets that show expected income and profits for DRGs at organization
levels that parallel the payment aggregate (leading institutions report revenues only at
aggregates that can be help accountable)
Financial Budgets - Correct Answers-Expectation of future financial performance,
composed of income and expense budget, budgeted financial statements, cash flow
budget, and capital and new programs budget; parallel the required financial reports.
Kinds of Financial Budgets - Correct Answers-Income and expense budget
Funds flow budget
Capital and new programs budget
Income and Expense Budget - Correct Answers-Expected net income and expenses
incurred by the organization as a while by period
Funds Flow Budget - Correct Answers-Estimates of cash income and outgo by period,
used by finance in cash and debt management
Capital and New Programs Budget - Correct Answers-Capital expenditures and new
programs accepted by the governing board, with their implications for the operating and
cash budgets by period and accountability center
Solutions
Controllership - Correct Answers-Transaction Accounting
Financial Accounting
Managerial Accounting
Goal Setting and Budgeting
Financial Mangement - Correct Answers-Financial Planning
Pricing Clinical Services
Financial Structures
Securing and Managing Liquid Assets
Managing Multi Corporate Accounting
Auditing - Correct Answers-Internal Audits
Compliance Review
External Audit
Continuous Improvement of the Accounting & Finance Functions - Correct Answers-
Stakeholder Satisfaction
Improve Performance
Reporting Financial Information (Standard for HCOs) - Correct Answers-Balance Sheet
Income or Profit-and-Loss Statement
Statement of sources and uses of funds
Statement of changes in fund balances
Freedom of Information Act (FOIA) - Correct Answers-Provides public the right to
request access to records from any federal agency. pubic should have general access
to information
General Ledger - Correct Answers-Technically, the record of all the firm's transactions;
the term often refers to the fixed and collective assets, such as depreciation, that must
be allocated to operational functions
Not-for-profit HCO have substantial obligations to report their financial activities through
the the IRS Form 990 mainly for - Correct Answers-Community Benefit and to Justify
Tax Exempt Status
, Net Revenue - Correct Answers-Income actually received as opposed to that initially
posted; equal to gross revenue - adjustments for bad debts, charity, and discounts to
third parties
Gross Revenue - Correct Answers-An entry into the patient to the patient ledger of the
charge for a specific healthcare service; no longer a meaningful measure
Bad Debts - Correct Answers-Cost for patients who are unable to pay for care
Charity Care - Correct Answers-Care given to the needy without expectation of payment
Operating Budget - Correct Answers-The aggregate of accountability-center
expenditure budgets and the corporate revenue budget
budgets must forcast - Correct Answers-At least 18 months into the future. well-run
institutions budget a second or event third year in the yearly budget cycle
Operating Budget includes - Correct Answers-Accountability-unit budgets by report
period and kind of resource (cost are negotiated with the other five dimensions of
financial scorecards)
Aggregate expenditures budgets, or "roll ups," that summarize larger sections of the
organization that parallel the accountability hierarchy (similar experience aggregates are
made of the goals for the other operational dimensions)
Revenue budgets that show expected income and profits for DRGs at organization
levels that parallel the payment aggregate (leading institutions report revenues only at
aggregates that can be help accountable)
Financial Budgets - Correct Answers-Expectation of future financial performance,
composed of income and expense budget, budgeted financial statements, cash flow
budget, and capital and new programs budget; parallel the required financial reports.
Kinds of Financial Budgets - Correct Answers-Income and expense budget
Funds flow budget
Capital and new programs budget
Income and Expense Budget - Correct Answers-Expected net income and expenses
incurred by the organization as a while by period
Funds Flow Budget - Correct Answers-Estimates of cash income and outgo by period,
used by finance in cash and debt management
Capital and New Programs Budget - Correct Answers-Capital expenditures and new
programs accepted by the governing board, with their implications for the operating and
cash budgets by period and accountability center
