HFMA Certified Healthcare Financial Professional CHFP Questions & Answers

• Question 21:

  An asset that, when increased, decreases the value of a related asset on the books is called:

  A. Controversial asset

  B. Slender asset

  C. Contra-asset

  D. Contracted asset

  Correct Answer: C

• Question 22:

  is the contra-asset to properties and equipment and the allowance for uncollectable, which is the contra-asset to accounts receivables.

  A. Dispersive appreciation

  B. Depreciation expense

  C. Depreciated Contra-asset

  D. Accumulated depreciation

  Correct Answer: D

• Question 23:

  Under accrual basis of accounting, revenues are recognized when earned.

  A. True

  B. False

  Correct Answer: A

• Question 24:

  Which of the following is NOT the disadvantage of accrual basis of accounting?

  A. keeps track of revenues generated and resources used as well as cash flows

  B. open to manipulation, by bending accounting rules

  C. matches revenues with the resources used to generate those revenuers

  D. the financial statements provide a broader picture of the provider's operation

  Correct Answer: B

• Question 25:

  The rules to record a transaction under the accrual basis of accounting includes:

  A. At least one account must be used to record a transaction.

  B. After each transaction, the fundamental accounting equation must be balanced.

  C. Both A and B

  D. Neither A nor B

  Correct Answer: B

• Question 26:

  An accounting method that tracks when cash was received and when cash was expended, regardless of when services were provided or resources were used is called:

  A. Cash recording accounting

  B. Accounting cash flows

  C. Cash statement of operations

  D. Cash basis of accounting

  Correct Answer: D

• Question 27:

  An accounting method that records revenues when earned and resources when used, regardless of cash in or out of the organization is called:

  A. Accrual basis of accounting

  B. Accounting Flow

  C. Modified statement of operations

  D. Cash basis of accounting

  Correct Answer: A

• Question 28:

  The break-even equation modified to include desired profit is:

  A. Price + Volume = Fixed cost + (variable cost per unit + volume) * Desired profit

  B. Price * Volume = Fixed cost + (variable cost per unit * volume) + Desired profit

  C. Price * Volume = variable cost + (variable cost per unit / volume) + Desired profit

  D. Price - Volume = Fixed cost + (variable cost per unit + volume) * Desired profit

  Correct Answer: B

• Question 29:

  The formula to calculate basic break-even equation is:

  A. Price * Volume = Fixed cost + (variable cost per unit * volume)

  B. Price + Volume = Fixed cost + (variable cost per unit + volume)

  C. Price * Volume = variable cost + (variable cost per unit / volume)

  D. Price - Volume = Fixed cost + (variable cost per unit + volume)

  Correct Answer: A

• Question 30:

  The structuring of debt relative to equity is called .

  A. Capital structure decision

  B. Debt structure decision

  C. Equity structure decision

  D. Capitalized decision

  Correct Answer: A