HFMA CHFP Online Practice Questions and Exam Preparation

HFMA CHFP Online Questions & Answers

• Question 21:

  Demand rate bonds allow the bondholders to resell the bonds through an auction process rather than the put feature of the variable rate debt.

  A. True
  B. False
  B. False

• Question 22:

  Which of the following is NOT the type cost centers in health care organizations?

  A. production cost centers
  B. service cost centers
  C. clinical cost centers
  D. administrative cost centers
  B. service cost centers

• Question 23:

  Which of the following is NOT the disadvantage of decentralization?

  A. Loss of control
  B. Information relevance
  C. Increased need for coordination
  D. Lack of managerial talent
  B. Information relevance

• Question 24:

  The degree of dispersion of responsibility within a heal care organization is known as _________.

  Decentralization

• Question 25:

  Ratios are grouped into which of four categories?

  A. liquidity, profitability, activity and capital structure
  B. liability, profitability, activity and operating expense
  C. liquidity, adjusted discharge, activity and capital structure
  D. activity, profitability, debt service and capital structure
  A. liquidity, profitability, activity and capital structure

• Question 26:

  Actuarial-based formula developed to adjust rates allowing for differences in population demographics is referred to as:

  A. Differential factor
  B. Conversion factor
  C. Calculated factor
  D. None of the above
  B. Conversion factor

• Question 27:

  The point where total revenues equal total costs is called:

  A. Cope point
  B. Break-even point
  C. Get-by point
  D. Equivalent point
  B. Break-even point

• Question 28:

  The formula to calculate the formula to calculate the future value of an annuity due is:

  A. FV annuity due = (FA i, n-1 + 1) * annuity
  B. FV annuity due = (FVFA i, n-1 + 1) / annuity
  C. FV annuity due = (FVFA i, n+1 - 1) * annuity
  D. FV annuity due = (FA i, n+1 - 1) / annuity
  C. FV annuity due = (FVFA i, n+1 - 1) * annuity

• Question 29:

  A health care organization that utilizes an aggressive asset mix strategy seeks to minimize its returns by investing in non-liquid assets but faces the risk of lower liquidity.

  A. True
  B. False
  B. False

• Question 30:

  The rate of return required undertaking a project; the cost of capital accounts for both the time value of money and risk refers to:

  A. Cost of return
  B. Cost of capital
  C. Cost of risk
  D. Cost of revenue
  B. Cost of capital