HFMA CHFP Online Practice Questions and Exam Preparation

HFMA CHFP Online Questions & Answers

• Question 61:

  An entity that negotiates the use of another's asset via a lease is called Lessee.

  A. True
  B. False
  A. True

• Question 62:

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

• Question 63:

  Which of the following is NOT the strength of an NVP analysis?

  A. Answers in dollars, not years
  B. Accounts for all the cash flows in the project
  C. Disregards cash flows after payback
  D. Discounts at the cost of capital
  C. Disregards cash flows after payback

• Question 64:

  Three approaches to analyze financial statements are: horizontal analysis, vertical analysis and .

  A. Financial leverage
  B. Trend analysis
  C. Absolute analysis
  D. Ratio analysis
  D. Ratio analysis

• Question 65:

  Salvage value is:

  A. the amount of credit to be received when an asset is sold, usually at the mid of its useful life.
  B. the amount of credit to be paid when an asset is purchased, usually at the end of its useful life.
  C. the amount of cash to be paid when an asset is purchased, usually at the mid of its useful life.
  D. the amount of cash to be received when an asset is sold, usually at the end of its useful life.
  D. the amount of cash to be received when an asset is sold, usually at the end of its useful life.

• Question 66:

  Balance sheet is majorly composed of:

  A. heading, body and notes
  B. heading, preliminary side bullets and notes
  C. footers, body and notes
  D. heading, body and footers
  A. heading, body and notes

• Question 67:

  After the break-even point, the size of the space between the total revenue line and the total cost line equals the amount of profit.

  A. True
  B. False
  A. True

• Question 68:

  Assets limited to use, long-term investments, property and equipment are all categories of:

  A. Current assets
  B. Account investments
  C. Noncurrent assets
  D. None of the above
  C. Noncurrent assets

• Question 69:

  Cash flows that have been adjusted to account for the cost of capital are called: A. Cost adjusted cash flows

  B. Capital cash flows
  C. Cash Investment flows
  D. Discounted cash flows
  D. Discounted cash flows

• Question 70:

  A method in which interest is calculated only on the original principal, which is the amount invested, is called:

  A. Simple interest method
  B. Money making method
  C. Investment method
  D. None of the above
  A. Simple interest method