Reference no: EM13749267

Question 1: A _________ is a necessary step that allows the organization to determine how to optimize the value of the cash being generated by its operations.

• budget
• capital budget
• operating budget
• cash budget

Question 2: A _________ budget is adjusted for changes in volume.

• flexible
• cash
• operating
• volume-adjusted

Question 3: If an organization does not want to overdraft, then it should look at the _________ cash balance when forecasting checking account balances.

• highest weekly
• average weekly
• lowest weekly
• highest

Question 4: It is likely that _________, as a group, will continue to play the key role they have historically enjoyed as leaders of the health care community.

• managed care
• physicians
• PPMCs
• corporations

Question 5: A key element of the variance report is the _________ set by the organization, triggering the need for an explanation.

• margin
• parameter
• list
• criteria

Question 6: The market capitalization for PPMCs increased from 1 billion in 1993 to _________ three years later.

• 5 billion
• 10 billion
• 12 billion
• 16 billion

Question 7: A negative consequence for consistently missed budgeted financial targets could be _________.

• preparation of a variance report.
• training.
• warning from higher management.
• job termination.

Question 8: Ideally a cash budget should be updated _________.

• weekly.
• monthly.
• semi-annually.
• annually.

Question 9: The initial cash budget should forecast a collection of _________ of budgeted net revenue.

• 100%
• 90%
• at least 70%
• at least 90%

Question 10: In 2004, physician practices encompassed almost _________ of the industry's financial outlays.

• 10%
• 20%
• 40%
• 60%

Question 11: Compare the difference between an operating budget, a capital budget, and a cash budget. What are the primary elements in each budget?