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

Stockholders equity for investors-owned organizations represents:

A. Stock and retained earnings

B. Stock and accrual earnings

C. Stock and sales D. Stock and purchase

Higher debt increases financial risk by magnifying the returns on net asset or equity.

A. True

B. False

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:

A. Investment value

B. Compound value

C. Future value

D. Money value

Total variable cost changes directly and per unit stays variable with a change in activity refers to variable cost.

A. True

B. False

A method that providers use to limit the exposure that comes with the possibility that charges will go far beyond negotiated rates is:

A. Stop-loss

B. Rate-loss

C. End-loss

D. Limit-loss

Actuarial-based formula developed to adjust rates allowing for differences in population demographics is referred to as:

A. Differential factor

B. Conversion factor

C. Calculated factor

D. None of the above

The formula to calculate basic break-even equation is:

A. Price * Volume = Fixed cost + (variable cost per unit * volume)

B. Price + Volume = Fixed cost + (variable cost per unit + volume)

C. Price * Volume = variable cost + (variable cost per unit / volume)

D. Price - Volume = Fixed cost + (variable cost per unit + volume)

____________expenses are the expenses that arise in the control course of business that have not yet been paid.

Plans that identify an organization's short-term goals and objectives in detail, primarily in regards to marketing, production, control and financing the organization id called ____________.