Free Certified Healthcare Financial Professional Exam CHFP Exam Practice Test

Organizational units responsible for producing products or providing services and controlling their costs fall in which category?

• production cost centers
• cost centers
• clinical cost centers
• administrative cost centers

Long-term debt to net assets ratios measures the proportion of assets that are financed by debt relative to those that are not.

• True
• False

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

• production cost centers
• service cost centers
• clinical cost centers
• administrative cost centers

Interest is a payment to creditors, those who have loaned the organization funds or otherwise extended credit.

• True
• False

The formula for times interest earned ratio is:

• [{(excess of revenues _ expenses) + interest expense}/ expected expense]
• [(excess of revenues over expenses _ interest expense) / interest revenue]
• [(excess of revenues over expenses + interest expense) / interest expense]
• [(excess of revenues over expenses * interest expense) / actual expense]

________ represent the portion of profit that an organization distributes to equity investors.

• Equity profit
• Dividends
• Capital investment
• Funding

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

• Cost payment system
• Ambulatory payment classifications
• Cost compliance and litigation
• None of the above

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

• Cost adjusted cash flows
• Capital cash flows
• Cash Investment flows
• Discounted cash flows

Identifying an organization's mission, goals and strategy to best position itself for the future is called:

• Mission statement
• Strategic Planning
• Future planning
• None of the above

Organizational units that are primarily responsible for ensuring that health care-related services are provided to a population in volume and quality control environment of the organization and have direct budgetary control.

• True
• False