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