Which of the following statements about finance, accounting, and financial management is most correct?
1
The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise.

Which of the following is not a finance activity?
2
Facilities management

Which of the following statements about regulatory and legal issues in the health services industry is not correct?
For the instructor, this was question 10.

The costs to a health services organization of complying with regulation are minimal.

Which of the following statements about the role of finance in healthcare organizations is incorrect?
For the instructor, this was question 8.

Today, the most critical finance function is …show more content…

Income statement Balance sheet Statement of cash flows Answers (a), (b), and (c)

During the year that ended on December 31, 2012, Oakwood Rehabilitation Hospital spent $50,000 cash on medical supplies. Oakwood's income statement for the year that ended on December 31, 2012, shows supplies expense of $35,000. Which of the following bases of accounting does Oakwood Rehabilitation Hospital most likely use?

Accrual basis accounting

Which of the following statements concerning net income versus cash flow is most correct?

Net income can be converted into a rough measure of cash flow by adding noncash expenses, typically depreciation.

Which of the following statements concerning depreciation expense is most correct?

Depreciation expense accounts for the loss of value of fixed assets (property and equipment).

Which of the following statements about the income statement is most correct?

It reports the economic profitability of an organization.

Meadowlands, a for-profit skilled nursing facility, pays taxes at a rate of 40 percent. Assume Meadowlands recorded depreciation expense of $100,000 for the year that ended on December 31, 2012. If Meadowlands changed its method of calculating depreciation such that depreciation expense doubled for the year that ended on December 31, 2012, which of the following statements is(are) most correct?

Meadowlands' estimated cash flow for the year