HFMA CHFP Exam Practice Test Instant Access

Question 1

In which act, federal legislation designed to tighten accounting standards in financial reporting and that holds top executives personally liable as to the accuracy and fairness of their financial statements?

ASarbanes-Oxley Act

BInsurance accountability Act

CFinancial statement Act

DPortability and Accountability Standardized Act

Answer : A

Question 2

Financial leverage is:

AThe degree to which an organization is financed by revenue.

BThe degree to which an organization is analyzed by it financial statement.

CThe degree to which an organization is burdened with financed analysis.

DThe degree to which an organization is financed by debt.

Answer : D

Question 3

Short-term debts that results from supplies purchased on credit for a given length of time are called:

ADebts

BCompensating fees

CTransaction notes

DTrade payables

Answer : D

Question 4

Supplies refer to small-dollar items that will be used up or fully consumed within more than two years.

ATrue

BFalse

Answer : B

Question 5

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

AFinancial leverage

BTrend analysis

CAbsolute analysis

DRatio analysis

Answer : D

Question 6

Balance sheet is majorly composed of:

Aheading, body and notes

Bheading, preliminary side bullets and notes

Cfooters, body and notes

Dheading, body and footers

Answer : A

Question 7

The formula for trend analysis is:

A(any subsequent year -- base year / base year) * 100

B(particular income subsequent year + base year / previous year) + 365

C(particular revenue current year -- previous year / base year) * 100

D(particular revenue previous year + base year / current year) + 365

Answer : A

HFMA Certified Healthcare Financial Professional CHFP Exam Practice Test