CHFP Online Practice Questions and Answers

A system that pays providers a specific amount in advance to care for defined health care needs of a population over a specific period is called:

A. Health care system

B. Prospective payments system

C. Global payment system

D. Capitation

Which of the following in NOT the body of the income statement for investors-owned health care organizations?

A. Operating income

B. Non-operating income

C. Income for taxes

D. Excess of revenues

Working capital is:

A. Current assets and current liabilities

B. Current expenses and current revenues

C. Expected assets and expected liabilities

D. Expected expenses and expected revenues

A post office box located near a Federal Reserve Bank or branch that for a fee will pick up and process checks quickly is called:

A. Pickup box

B. Lockbox

C. Process box

D. Live box

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 method to evaluate the feasibility of an investment by determining how long it would take until the initial investment is recovered; disregarding the time value of money refers to:

A. Feasibility method

B. Investment method

C. Analysis method

D. Payback method

Which is the ideal platform to calculate net present value because most, if not all, have built-in functions that simplify the determination of NPV?

A. Excel

B. Spreadsheet

C. Outlook

D. Publisher

Debt service coverage is equal to:

A. (gross income + debts + depreciation + amortization) / maximum half year debt service payments

B. (net income + interest + depreciation + amortization) / maximum annual debt service payments

C. (net income + expenses + depreciation + amortization) / minimum annual interest service payments

D. (net income + revenues + appreciation + amortization) / minimum half year interest service payments

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

A. True

B. False

Identify non-operative revenues and total operating revenues on statement of operations and then divide non-operating revenues by total operating revenues makes:

A. Total revenue ratio

B. Operating margin revenue ratio

C. Gross operating revenue ratio

D. Non-operating revenue ratio

Total operating revenues divided by Net plant and equipment makes:

A. Total asset activity measure

B. Total revenue turnover

C. Variable asset turnover ratio

D. Fixed asset turnover ratio

The formula to calculate perpetuity is:

A. Amount of perpetuity = initial investment * interest rate

B. Amount of perpetuity = initial investment - interest rate

C. Amount of perpetuity = initial investment + interest rate

D. Amount of perpetuity = initial investment / interest rate

The method of setting premium rates based on the actual health care costs of a group or groups is:

A. Premium rating plan

B. Fixed payment rating

C. Actual rating

D. Experience rating

Sub-capitation is:

A. where the primary care physician pays a portion of the total capitated dollars received to another provider.

B. where the secondary care physician pays half portion of the total capitated dollars received to another provider.

C. where the primary care physician receives a portion of the total capitated dollars paid to another provider.

D. where the primary care physician receives half of the total capitated dollars paid to another provider.

______is an agreement established by a bank and a borrower that establishes the maximum amount of funds that could be borrowed and the bank may loan the funds at its own discretion.