HFMA CHFP Online Practice Questions and Exam Preparation

HFMA CHFP Online Questions & Answers

• Question 251:

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

  A. Discounts at the cost of capital
  B. Assumes reinvestment of proceeds at the internal rate of return
  C. Estimates may be difficult to develop
  D. Can generate multiple rates of return if future cash flows are estimates
  A. Discounts at the cost of capital

• Question 252:

  Short-term debts that results from supplies purchased on credit for a given length of time are called:

  A. Debts
  B. Compensating fees
  C. Transaction notes
  D. Trade payables
  D. Trade payables

• Question 253:

  The current ratio, quick ratio and acid test ratio all measures the relationship of:

  A. current assets to current liabilities
  B. current cash on hand to current expanses
  C. current accounts receivables to net accounts payables
  D. None of the above
  A. current assets to current liabilities

• Question 254:

  The formula to calculate Expense cost variance is:

  A. (Actual cost per unit ?budgeted cost per unit) * Actual volume
  B. (Retail cost per unit ?budgeted cost per unit) * Retail volume
  C. (variance cost per unit ?budgeted cost per unit) * Actual volume
  D. (Actual cost per unit ?variance cost per unit) * variance volume
  A. (Actual cost per unit ?budgeted cost per unit) * Actual volume

• Question 255:

  A method that providers use to limit the exposure that comes with the possibility that charges will go far beyond negotiated rates is:

  A. Stop-loss
  B. Rate-loss
  C. End-loss
  D. Limit-loss
  A. Stop-loss

• Question 256:

  Which of the following is NOT the step used to calculate the Net present value (NPV) of the satellite clinic alternative?

  A. Determine revenues and expenses
  B. Add (subtract) any non-annual cash flows
  C. Project incremental cash flows
  D. Adjust for working capital
  C. Project incremental cash flows

• Question 257:

  Which of the following is NOT the weakness to the payback method?

  A. Answers in years, not dollars
  B. Discount rate may be difficult to develop
  C. Disregards cash flows after payback
  D. Does not account for the time value of money
  B. Discount rate may be difficult to develop

• Question 258:

  Identify the total operating revenues on statement of operations, identify total assets on balance sheet then divide total operating revenues by total assets makes:

  A. Return on investments
  B. Return on total assets
  C. Return on net assets
  D. None of the above
  C. Return on net assets

• Question 259:

  Profit centers are the organizational units responsible for controlling costs and earning revenues.

  A. True
  B. False
  A. True

• Question 260:

  Whenever a series of payments is to be invested or received at the end of the year, an ordinary annuity table can be used to determine future value, rather than computing the future value of each year's cash flow.

  A. True
  B. False
  A. True