HFMA CHFP Online Practice Questions and Exam Preparation

HFMA CHFP Online Questions & Answers

• Question 221:

  Some of the primary instruments for health care organizations to invest in on a long-term basis include treasury bills, certificates of deposit, commercial paper and money market funds.

  A. True
  B. False
  B. False

• Question 222:

  Organizational units that have all the responsibilities of a traditional profit center and are responsible for return on investment are known as:

  A. Investment centers
  B. Profit centers
  C. Capitated centers
  D. Traditional investment centers
  A. Investment centers

• Question 223:

  A smaller portion of a fixed rate bond issue that matures during the early due dates of the issue, typically during the first ten to fifteen years with their own interest rate are called:

  A. Callable bonds
  B. Early Fixed bonds
  C. Early rate bonds
  D. Serial bonds
  D. Serial bonds

• Question 224:

  The formula to calculate break-even is:

  A. Break-even volume = variable costs / contribution margin
  B. Break-even volume = Fixed costs / contribution margin per unit
  C. Break-even volume = Fixed costs - contribution margin per unit
  D. Break-even volume = Fixed costs * contribution margin per unit
  B. Break-even volume = Fixed costs / contribution margin per unit

• Question 225:

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

• Question 226:

  In investor-owned organizations, the accounting equation is:

  A. Assets are equal to the sum of liabilities and owner's equity
  B. Assets are equal to the sum of liabilities and shareholder's equity
  C. Assets are equal to the sum of liabilities and proprietor's equity
  D. Assets are equal to the sum of liabilities and net assets
  B. Assets are equal to the sum of liabilities and shareholder's equity

• Question 227:

  is the capital investment decision designed to increase the operational capability of a health care organization.

  A. Incremental decision
  B. Operational decision
  C. Financial decision
  D. Expansion decision
  D. Expansion decision

• Question 228:

  Which of the following is NOT the strength of the IRR analysis?

  A. Consider all relevant cash flows of the investment project
  B. Can generate multiple rates of return if future cash flows are estimates
  C. Time value of money-based approach
  D. Widely used by practitioners and easily understood
  B. Can generate multiple rates of return if future cash flows are estimates

• Question 229:

  The days cash on hand ratio can be calculated as:

  A. {(credit + marketplace securities - long-term investments) / [(operating expenses + depreciation and amortization expenses) / 365]}
  B. {(cash + marketplace securities + short-term investments) / [(operating expenses ?depreciation and amortization revenues) - 365]}
  C. {(cash + marketplace securities - short-term investments) / [(operating revenues ?depreciation and amortization expenses) / 365]}
  D. {(cash + marketplace securities + long-term investments) / [(operating expenses ?depreciation and amortization expenses) / 365]}
  D. {(cash + marketplace securities + long-term investments) / [(operating expenses ?depreciation and amortization expenses) / 365]}

• Question 230:

  Non-financial benefit, financial return and future funding are the objectives of:

  A. Capital investment decision
  B. Expansion investment decision
  C. Strategic investment decision
  D. Financial investment decision
  A. Capital investment decision