Question 1

Operating income divided by total operating revenues measures:

Options :

A : Net operating value

B : Operating margin ratio

C : Gross operating ratio

D : Subsequent operating ratio

Answer: B

Question 2

____________ represents the amount that a service contributes toward covering all other costs after

it has covered the costs that are solely because the service is offered and would not be there if the

service were dropped.

Options :

A : Margin cost

B : Service cost

C : Product margin rule

D : Product margin

Answer: D

Question 3

Estimated third party payor settlements are the category of?

Options :

A : Current assets

B : Current Equity

C : Current Expenses

D : Current liabilities

Answer: D

Question 4

The combination of age and technology has increased cost with the passage of time.

Options :

A : True

B : False

Answer: A

Question 5

Debt service coverage is equal to:

Options :

A : (gross income + debts + depreciation + amortization) / maximum half year debt service payments

B : (net income + interest + depreciation + amortization) / maximum annual debt service payments

C : (net income + expenses + depreciation + amortization) / minimum annual interest service payments

D : (net income + revenues + appreciation + amortization) / minimum half year interest service payments

Answer: B

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