Test 1

Question 0

Neutrality

Answer 0

Reliability

Question 1

Feedback value

Answer 1

Relevance

Question 2

Industrial comparison

Answer 2

Comparability

Question 3

Predictive value

Answer 3

Relevance

Question 4

Verifiability

Answer 4

Reliability

Question 5

Timeliness

Answer 5

Relevance

Question 6

Same “thing” between different time periods

Answer 6

Consistency

Question 7

4 types of financial statements

Answer 7

1. Balance sheet
2. Income statement
3. Statement of cash flow
4. Statement of owner’s equity or retained earnings

Question 8

Why is cost the primary piece of information for accounting?

Answer 8

Objective
Verifiable
Reproducible

This concept is called “cost valuation”

Question 9

The value of a business after accounting for liabilities is . . .
“The owner’s claim to the business resources”

Answer 9

Stockholders equity (owners equity)

Question 10

If total assets (A) increase what must happen to SE or L?

A= L + SE

Answer 10

Increase

Question 11

Assets that are expected to be exchanged for cash or consumed during the operating cycle

Answer 11

Current assets

Question 12

Represents legally enforceable claims on customers for prior services of goods

Answer 12

Accounts receivable

Question 13

The amount invested and reinvested in a company by its shareholders

Answer 13

Stockholders equity

Question 14

The business’s profit =

Answer 14

Revenues - expenses

Question 15

Sales of goods or services to customers. Measured at the amount the business charges the customer

Answer 15

Revenue

Question 16

The costs of business necessary to earn revenues, including wages to employees, advertising, insurance and utilities.

Answer 16

Expenses

Question 17

Statement that lists TA and TL of a company

Answer 17

Balance sheet

Question 18

Portrays a company’s net worth at any moment in time

Answer 18

Balance sheet

Question 19

Savings account

Answer 19

Cash equivalent

Question 20

Records the company’s revenues and expenses for a specific period of time

Answer 20

Income statement

Revenues - expenses = net income

Question 21

Reports how a company’s retained earnings have changed over some time period

Answer 21

Statement of owner’s equity

Question 22

Reports all major cash receipts (inflows) and cash payments (outflows) during a period

Answer 22

Statement of cash flows

Question 23

May be used as an analytical tool to asses short-term VIABILITY of a company

Answer 23

Statement of cash flows

Question 24

What do TPPs impact?

Answer 24

Cost Access Reimbursement to pharmacy Pharmacy's ability to make a profit

Question 25

``` What is in charge of: Formulary development & management Cost management Claims processing Provider payment ```

Answer 25

PBMs

Question 26

``` Which of the following do PBMs do? A. Purchase prescriptions from manufacturers B. Provide medications to pts C. Submit claims to Health insurer D. Pays premiums to health plan ```

Answer 26

C

Question 27

Which of the following do wholesalers do? A. Purchase prescriptions from manufacturers B. Provide medications to pts C. Submit claims to Health insurer D. Pays premiums to health plan

Answer 27

A

Question 28

Which of the following do pharmacies do? A. Purchase prescriptions from manufacturers B. Provide medications to pts C. Submit claims to Health insurer D. Pays premiums to health plan

Answer 28

B

Question 29

Which of the following do plan sponsors do? A. Purchase prescriptions from manufacturers B. Provide medications to pts C. Submit claims to Health insurer D. Pays premiums to health plan

Answer 29

D

Question 30

WAC

Answer 30

Wholesaler Acquisition Cost

Question 31

AMP

Answer 31

Average manufacturers price *what Medicaid & Medicare use to pay pharmacies back

Question 32

AWP

Answer 32

Average wholesale price

Question 33

AAC

Answer 33

Actual acquisition cost

Question 34

EAC

Answer 34

Estimated acquisition cost

Question 35

What is a weighted moving average that takes into account the variance between actual and forecasted?

Answer 35

Exponential smoothing

Question 36

What is a time series model that fits a trend line to a series of historical data points and then projects the line into the future for forecasts

Answer 36

Trend projections

Question 37

A straight line mathematical model that describes the functional relationships between independent and dependent variables

Answer 37

Linear-regression analysis

Question 38

``` ___________ can be correlated to: Prices Advertising budget Competitors prices Customer service Level of inventory Unemployment rate ```

Answer 38

Prescription sales

Question 39

What quantitative forecasting method assumes that the future period will equal the actual period?

Answer 39

Naive approach (Most cost effective Good starting point for other models)

Question 40

What are the four components of time series models?

Answer 40

Trend Seasonality Cycles Random variations

Question 41

A schedule explaining any differences between the bank and the company's record of cash *one of the most important tools used in the control of cash

Answer 41

Bank reconciliation

Question 42

What is the pharmacy's ability to pay back its debt over the long term?

Answer 42

Solvency

Question 43

What shows the pharmacy's profitability?

Answer 43

Income statement

Question 44

``` Which of the following are profitability ratios? Gross margin Current ratio Return on assets Cash flow Debt-to-total assets ratio Efficiency ratio ```

Answer 44

Gross margin Return on assets Cash flow Efficiency ratio

Question 45

``` Which of the following are liquidity and solvency ratios? Gross margin Current ratio Return on assets Cash ratio Debt-to-total assets ratio Efficiency ratio Quick ratio ```

Answer 45

``` Quick ratio Cash ratio Current ratio Debt to total assets ratio Debt to equity ratio ```

Question 46

what tells you what the company can do with what it's got? | It indicates the profitability of the company relative to its TA before leverage

Answer 46

ROA