CHFP Online Practice Questions and Answers

The combination of age and technology has increased cost with the passage of time.

A. True

B. False

Which organizations are the third party entities that contract with multiple hospitals to offer cost savings in the purchase of supplies and equipment by negotiating large-volume discounted contract with vendors?

A. Cost saving organizations

B. Global payment organizations

C. Group purchasing organizations

D. Cost-accounting organizations

What is relatively costly item that allow the organization to deliver service over time?

A. Equipment

B. Supplies

C. Noncurrent asset

D. Current asset

A source of temporary cash is , which does not actually bring in cash but instead slows its outflows.

A. Trade cash

B. Credit revenue

C. Cash capital

D. Trade credit

Replacement decision is the financial investment decision designed to replace older assets with newer, cost-saving ones.

A. True

B. False

The rate of return required undertaking a project; the cost of capital accounts for both the time value of money and risk refers to:

A. Cost of return

B. Cost of capital

C. Cost of risk

D. Cost of revenue

The interest rate that a hospital borrower exchanges between another party, typically a bank or investment banking firm, with the intent of securing a more favorable rate is called:

A. Rate of exchange

B. Favorable rate swaps

C. Interest rate swaps

D. Payment swapping

Which of the following is NOT the step involved in the bond issuance process?

A. The health care borrower is evaluated by a credit rating agency.

B. The bond is rated by a credit rating agency.

C. The underwriters purchase the bonds from bondholders at very low prices.

D. Trustee provides the health care provider with the net proceeds from a bond issuance.

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

A. FV = PV + (1 + i/m) n*m

B. FV = PV * (1 + i/m) n-m

C. FV = PV - (1 + i*m) n/m

D. FV = PV * (1 + i/m) n*m

Controlling costs, decreasing profit margins, or both to meet or beat a predetermined price or reimbursement rate refers to:

A. Target costing

B. Cost monitoring

C. Cost supervision

D. Charge management