HFMA CHFP Online Practice Questions and Exam Preparation

HFMA CHFP Online Questions & Answers

• Question 41:

  If the contribution margin per unit is positive and no other additional costs will be incurred, then it is in the best financial interest of the organization to continue to provide additional units of that service , even the organization is not fully covering all its other costs otherwise not, this is called:

  A. Subcapitation margin rule
  B. Additional margin rule
  C. Contribution margin rule
  D. Incremental / decremental margin rule
  C. Contribution margin rule

• Question 42:

  Total variable cost changes directly and per unit stays variable with a change in activity refers to variable cost.

  A. True
  B. False
  B. False

• Question 43:

  A method in which interest is calculated on both the original principal and on all interest accumulated since the beginning of the investment time period refers to:

  A. Dual interest method
  B. Multifaceted interest method
  C. Complex interest method
  D. Compound interest method
  D. Compound interest method

• Question 44:

  What change the basis of payment for hospital outpatient services from a flat fee for individual services to fixed reimbursement for bundled services?

  A. Cost payment system
  B. Ambulatory payment classifications
  C. Cost compliance and litigation
  D. None of the above
  B. Ambulatory payment classifications

• Question 45:

  Cash (or cash equivalents) is the most liquid asset on the balance sheet.

  A. True
  B. False
  A. True

• Question 46:

  Debit service coverage ratio is a critical ratio used by investment bankers because it reflects what proportion of the cash flow payments are being used to pay off debt.

  A. True
  B. False
  B. False

• Question 47:

  Daily operations, precautionary purposes and speculative purposes are the reasons for a health care provider to hold:

  A. Finance credits
  B. Cash
  C. Assets
  D. None of the above
  B. Cash

• Question 48:

  An amount paid above and beyond the book value of an asset when it is sold, representing the value of intangible factors refers to:

  A. Salvage value
  B. Pro forma statement
  C. Goodwill
  D. Annuity
  C. Goodwill

• Question 49:

  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
  D. Accumulated depreciation

• Question 50:

  The general decision rule regarding NPV is: If NPV > 0, accept or reject the project If NPV < 0, reject the project If NPV = 0, accept the project

  A. True
  B. False
  B. False