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Advanced Coding: E/M, Medicine, And Anesthesia
Anesthesia administered to a normal, healthy patient undergoing an esophageal procedure is coded as
A. 00500-P1. B. 00502-P1. C. 00500-P2. D. 00506-P1.
2. A new patient comes into the doctor’s office for her annual gynecological exam. During the course of the exam, she undergoes a screening cervical cytopathology smear, which is performed by an automated system under the supervision of a physician. What HCPCS code is assigned?
A. G0185 B. G7869 C. G7452 D. G0147
3. A new patient is seen for a home visit that involves a comprehensive history, examination, and medical decision making of high complexity. What code should be assigned?
A. 99349 B. 99345 C. 99342 D. 99350
4. A prolonged evaluation and management service before and/or after direct patient care for one hour is coded as
A. 99359. B. 99358. C. 99361. D. 99360.
5. A 57-year-old patient is admitted to the hospital for a hip arthroscopy procedure. The patient is a normal healthy patient with no systemic disease. What anesthesia CPT code should be assigned?
A. 01242-P2 B. 01202-P1 C. 01202-P3 D. 01202-P5
6. Anesthesia for procedures performed on the larynx and trachea in an 11-month-old child would be assigned to code
A. 00620. B. 00625. C. 00326. D. 00532.
7. A patient returns for a follow-up office visit regarding the repair of her fractured knee. The office visit consists of a detailed history, detailed examination, and medical decision making of moderate complexity. What CPT code is assigned?
A. 99213 B. 99212 C. 99211 D. 99214
8. Intramuscular nonhormonal antineoplastic chemotherapy administration would be assigned to code
A. 96402. B. 96405. C. 96406. D. 96401.
9. Home infusion with specialty drug administration during a 6-hour visit would be assigned what codes?
A. 99606, 99607 ×3 B. 99601, 99602 ×4 C. 99604, 99605 ×2 D. 99603, 99604 ×2
10. A patient is seen for a psychiatric diagnostic evaluation. The physician obtains a complete history of the patient’s mental status and does a complete biological and psychosocial assessment along with a complete physical examination. The physician’s final diagnosis is recurrent episode of severe major depressive disorder, without any psychotic behavior involved. The patient also has a history of psychological trauma. What codes are assigned?
A. F33.2, Z91.49 B. F33.1, Z91.47 C. F34.2, Z91.49 D. F36.2, Z91.46
11. A 17-year-old patient is diagnosed with a severe form of nutritional anemia. What ICD-10-CM code should be assigned?
A. D45.9 B. D53.9 C. D74.9 D. D65.9
12. A 32-year-old patient receives anesthesia for spinal surgery. The anesthesia is complicated by utilization of controlled hypotension. What add-on anesthesia code would be assigned?
A. 99174 B. 92117 C. 99100 D. 99135
13. Nursing facility discharge day management of 19.5 minutes would be assigned to code
A. 99317. B. 99319. C. 99316. D. 99315.
14. A patient is admitted to the hospital for leukemia. She has a comprehensive history, comprehensive examination, and medical decision making of high complexity. What CPT code should be assigned?
A. 99202 B. 99223 C. 99213 D. 99251
15. A service that is rarely provided, unusual, variable, or new may require a
A. physician’s authorization. B. patient’s authorization. C. staged or related procedure. D. special report.
16. A new patient is seen for a prescription refill. During the visit, the physician obtains a problem focused history, problem focused examination, and medical decision making is straightforward. What CPT code should be assigned for this service?
A. 99214 B. 99215 C. 99213 D. 99201
17. A 7-year-old child is brought to the clinic due to recurrent ear infections. The physician performs a bilateral tympanostomy under general anesthesia. What CPT code should be assigned?
A. 69436-50 B. 69536-50 C. 69426-50 D. 69736-50
18. Code 00906 is assigned for
A. an angioscopy. B. anesthesia for surgery performed on the bony pelvis. C. an osteotomy. D. anesthesia provided for a vulvectomy.
19. A 25-year-old patient receives a Hepatitis A vaccination. The vaccine is administered intramuscularly in the clinic. What CPT codes should be assigned?
A. 90632, 90471 B. 90541, 90489 C. 90637, 90472 D. 90672, 90451
20. A dark adaptation examination with interpretation and report is assigned to code
A. 92326. B. 92284. C. 92287. D. 92325.
FIN 100 WEEK 11 QUIZ
Question 1
Assume a firm’s production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?
110 days
130 days
190 days
270 days
Question 2
The time between ordering materials and collecting cash from receivables is known as the:
operating cycle
cash conversion cycle
accounts receivable period
term payable cycle
Question 3
The time between when the firm pays its suppliers and when it collects money from its customers is known as the:
operating cycle
cash conversion cycle
accounts receivable period
clearing cycle
Question 4
Which of the following is not an advantage of short-term borrowing?
flexibility
establishing continuous relationships with a bank or financial institution
frequent renewals
lower cost
Question 5
In June, Erie Plastics had an ending cash balance of $35,000. In July, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of July, Erie Plastics had
an excess cash balance of $25,000
An excess cash balance of $0
required financing of $10,000
required financing of $25,000
Question 6
A compensating balance on a bank loan effectively ____________ the cost of the loan.
raises
lowers
has no effect on
has an indeterminate effect on
Question 7
In order to borrow $100,000 for a 10% loan on discount basis, the firm will actually have to borrow:
$110,000
$111,111
$100,000
$90,000
Question 8
When old short-term debt is replaced by new short-term debt as the old debt comes due, the process is known as:
compensating balance
rolling the debt
fluctuating financing
re-terming
Question 9
Which of the following short-term sources of funds is available only to the financially strongest concerns?
trade credit
commercial bank loans
finance company loans
commercial paper
Question 10
If a firm actually sells its accounts receivable, the process is known as:
wholesale financing
pledging
field crediting
factoring
Question 11
The ratio between the present value of a project’s cash inflows and the present value of its initial investment is called the:
MIRR.
IRR.
PI.
NPV.
Question 12
Internal rate of return (IRR) and net present value (NPV) methods:
generally arrive at the same accept/reject decisions
are less sophisticated than the payback period
cannot make use of the same cash flows
can be substituted for by the payback period
Question 13
Which of the following is not considered a stage in the capital budgeting process?
development
production
implementation
selection
Question 14
The internal rate of return concept is best explained by which of the following?
rate where NPV is equal to zero
point where initial investment has been returned
marginal cost of capital
average book value
Question 15
The payback period concept is best explained by which of the following?
marginal cost of capital
point where initial investment has been returned
rate where NPV is equal to zero
accounting rate of return
Question 16
The cost of debt:
is typically higher than the cost of preferred stock
must be adjusted to an after-tax cost
is higher than the cost of retained earnings
is the lowest component cost because corporations can deduct 70 percent of the interest expense
Question 17
As a general rule, the capital structure that maximizes stock price also:
minimizes the weighted average cost of capital
maximizes the weighted average cost of capital
minimizes the required rate of return on equity
maximizes the cost of debt
Question 18
The after-tax cost of debt for a firm in the 35% tax bracket with a before-tax cost of debt of 6% is:
6%
2.1%
3.9%
5.8%
Question 19
Ningbo Shipping has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of Ningbo Shipping preferred stock is:
7.2%.
12.0%.
12.4%.
15%.
Question 20
A firm’s mix of debt and equity defines the firm’s:
capital structure
working capital
Finance Data Bank 39160
Last month, Lloyd’s Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm’s WACC. The Fed’s action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project’s forecasted NPV? Note that a project’s projected NPV can be negative, in which case it should be rejected.
Old WACC:
10.00%
New WACC:
12.50%
Year
0
1
2
3
Cash flows
-$1,000
$410
$410
$410
62.Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm’s WACC. The Fed’s action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project’s forecasted NPV? Note that a project’s projected NPV can be negative, in which case it should be rejected.
Old WACC:
8.00%
New WACC:
8.50%
Year
0
1
2
3
Cash flows
-$1,000
$410
$410
$410
63.Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project’s MIRR? Note that a project’s projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
8.75%
Year
0
1
2
3
Cash flows
-$1,000
$450
$450
$450
64.Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project’s MIRR? Note that a project’s projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
14.75%
Year
0
1
2
3
Cash flows
-$800
$350
$350
$350
65.Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project’s MIRR? Note that a project’s projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
10.00%
Year
0
1
2
3
4
Cash flows
-$1,175
$300
$320
$340
$360
66.Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project’s MIRR? Note that a project’s projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
13.25%
Year
0
1
2
3
4
Cash flows
-$850
$300
$320
$340
$360
67.Stern Associates is considering a project that has the following cash flow data. What is the project’s payback?
Year
0
1
2
3
4
5
Cash flows
-$750
$300
$310
$320
$330
$340
68.Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback?
WACC:
10.00%
Year
0
1
2
3
Cash flows
-$950
$500
$500
$500
69.Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback?
WACC:
10.00%
Year
0
1
2
3
4
Cash flows
-$700
$525
$485
$445
$405
70.Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. If the decision is made by choosing the project with the higher IRR rather than the one with the higher NPV, how much, if any, value will be forgone, i.e., what’s the chosen NPV versus the maximum possible NPV? Note that (1) “true value” is measured by NPV, and (2) under some conditions the choice of IRR vs. NPV will have no effect on the value gained or lost.
WACC:
6.75%
0
1
2
3
4
CFS -$1,100
$550
$600
$100
$100
CFL
-$2,700
$650
$725
$800
$1,400
71.A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose?
WACC:
7.75%
0
1
2
3
4
CFS -$1,025
$380
$380
$380
$380
CFL
-$2,150
$765
$765
$765
$765
72.Sexton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV, so no value will be lost if the IRR method is used.
WACC:
15.25%
0
1
2
3
4
CFS -$2,050
$750
$760
$770
$780
CFL
-$4,300
$1,500
$1,518
$1,536
$1,554
73.Moerdyk& Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV, i.e., no conflict will exist.
WACC:
11.50%
0
1
2
3
4
CFS -$1,025
$650
$450
$250
$50
CFL
-$1,025
$100
$300
$500
$700