HFMA CHFP Exam Practice Test Instant Access

Question 1

Stockholders equity for investors-owned organizations represents:

AStock and retained earnings

BStock and accrual earnings

CStock and sales

DStock and purchase

Answer : A

Question 2

Activities that provide guidance and feedback to keep organization within its budget once it has been approved and its being implemented refers to:

AControlling activities

BFeedback

CStrategic activities

DNone of the above

Answer : A

Question 3

If the organization has long-term working capital financing needs, it is better off financing needs with short-term financing under normal conditions.

ATrue

BFalse

Answer : A

Question 4

Two dates are often shown so that the reader can compare two successive periods, this is called:

Acomparative net assets

Bcomparative balance sheet

Ccomparative income statement

Dcomparative cash flows

Answer : B

Question 5

What is called common-size analysis because it converts every line item to a percentage, thus allowing comparisons of the makeup of the financial statements of different-sized organizations?

AHorizontal analysis

BVertical analysis

CBaseline analysis

DFinancial analysis

Answer : B

Question 6

An asset with clear value that is pledged against a loan to reduce risk to the lender is known as:

APledged asset

BCollateral

CMortgage

DBank Term loan

Answer : B

Question 7

Which of the following is NOT the step includes in computing the age of plant ratio?

AIdentify the accumulated depreciation on the balance sheet.

BIdentify the depreciated expense on the statement of operations.

CSubtract the accumulated depreciation by the depreciation expense

DDivide the accumulated depreciation by the depreciation expense.

Answer : C

HFMA CHFP Certified Healthcare Financial Professional Exam Practice Test