HFMA CHFP Exam Practice Test Instant Access

Question 1

The future value formula to compound at intervals more frequent than annual is:

AFV = PV + (1 + i/m) n*m

BFV = PV * (1 + i/m) n-m

CFV = PV - (1 + i*m) n/m

DFV = PV * (1 + i/m) n*m
(Where i= annual interest rate, m=number of times /year that compounding occurs and n= number of years)

Answer : D

Question 2

An agreement established by the bank and the borrower that legally requires the bank to loan money to the borrower at any time requested up to the pre-negotiated limit is called:

ANormal Line of credit

BRevolving Line of credit

CCommitment Line of credit

DNone of the above

Answer : B

Question 3

The formula to calculate perpetuity is:

AAmount of perpetuity = initial investment * interest rate

BAmount of perpetuity = initial investment - interest rate

CAmount of perpetuity = initial investment + interest rate

DAmount of perpetuity = initial investment / interest rate

Answer : A

Question 4

Question-Type: FILL IN THE BLANKS

Question-Title: The quick ratio is equal to addition of cash, marketable securities and net accounts receivables divided by current liabilities, in this which entity is relatively liquid one?

Answer :

Question 5

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

ASalvage value

BPro forma statement

CGoodwill

DAnnuity

Answer : C

Question 6

What an amount invested today will be worth at a given time in the future using the compound interest method, which accounts for the time value of money, this refers to:

AInvestment value

BCompound value

CFuture value

DMoney value

Answer : C

Question 7

The portion of profits that an organization keeps for itself in-house to use in growth and support of its mission is called:

AEquity profit

BInterest

CCapital investment

DRetained earnings

Answer : D

HFMA Certified Healthcare Financial Professional CHFP Exam Practice Test