HI 310
Healthcare Finance & Revenue Cycle
Methodology
FINALS READINESS EXAM
Q & S
©2024/2025
1. Which of the following ratios is used to evaluate the
financial performance of a healthcare facility by measuring
its profitability relative to its total assets?
 A) Current Ratio
 B) Quick Ratio
 C) Return on Assets (ROA)
 D) Debt-to-Equity Ratio
 Answer: C) Return on Assets (ROA)
 Rationale: ROA measures how efficiently a healthcare
facility is using its assets to generate profits.
2. Which methodology is most effective for optimizing the
claims process to reduce denial rates in healthcare
settings?
 A) Just-in-Time (JIT)
 B) Six Sigma
 C) Lean Manufacturing
 D) Total Quality Management (TQM)
 Answer: B) Six Sigma
 Rationale: Six Sigma focuses on reducing process
variation and improving process control, which is ideal for
optimizing the claims process.
3. Which of the following is a primary component of the
revenue cycle in healthcare that directly affects billing
accuracy?