HFMA CSAF REAL EXAM WITH ACTUAL ANSWERS 2026
JAN - UPDATE–400 QUESTIONS AND CORRECT
DETAILED ANSWERS
(Multiple Choice with Solutions)
SECTION A: Financial Statements (Q1–Q20)
1. Which financial statement reports assets, liabilities, and net
assets at a point in time?
A. Income statement
B. Cash flow statement
C. Balance sheet ✅
D. Statement of operations
Explanation: The balance sheet shows financial position on a
specific date.
2. Net patient service revenue is reported on which statement?
A. Balance sheet
B. Income statement ✅
C. Cash flow statement
D. Notes only
Explanation: Revenue and expenses appear on the income
statement.
3. Which activity is classified as an operating cash flow?
,A. Issuance of bonds
B. Purchase of equipment
C. Cash received from patients ✅
D. Sale of investments
Explanation: Patient payments relate to core operations.
4. Depreciation expense primarily affects:
A. Cash flow
B. Income statement ✅
C. Financing activities
D. Equity only
Explanation: Depreciation is a non-cash operating expense.
5. Which statement reconciles net income to cash provided by
operations?
A. Balance sheet
B. Cash flow statement ✅
C. Income statement
D. Statement of net assets
6. Unrestricted net assets are most similar to:
A. Retained earnings
B. Restricted funds
, C. Equity ✅
D. Liabilities
7. Accounts receivable appears on the:
A. Income statement
B. Balance sheet ✅
C. Cash flow statement
D. Notes only
8. Which increases cash flow but not net income?
A. Revenue recognition
B. Depreciation ✅
C. Interest expense
D. Salaries
9. Which item is a long-term liability?
A. Accounts payable
B. Accrued wages
C. Bonds payable ✅
D. Prepaid expenses
10. Charity care is typically:
A. Recorded as revenue
B. Recorded as expense
JAN - UPDATE–400 QUESTIONS AND CORRECT
DETAILED ANSWERS
(Multiple Choice with Solutions)
SECTION A: Financial Statements (Q1–Q20)
1. Which financial statement reports assets, liabilities, and net
assets at a point in time?
A. Income statement
B. Cash flow statement
C. Balance sheet ✅
D. Statement of operations
Explanation: The balance sheet shows financial position on a
specific date.
2. Net patient service revenue is reported on which statement?
A. Balance sheet
B. Income statement ✅
C. Cash flow statement
D. Notes only
Explanation: Revenue and expenses appear on the income
statement.
3. Which activity is classified as an operating cash flow?
,A. Issuance of bonds
B. Purchase of equipment
C. Cash received from patients ✅
D. Sale of investments
Explanation: Patient payments relate to core operations.
4. Depreciation expense primarily affects:
A. Cash flow
B. Income statement ✅
C. Financing activities
D. Equity only
Explanation: Depreciation is a non-cash operating expense.
5. Which statement reconciles net income to cash provided by
operations?
A. Balance sheet
B. Cash flow statement ✅
C. Income statement
D. Statement of net assets
6. Unrestricted net assets are most similar to:
A. Retained earnings
B. Restricted funds
, C. Equity ✅
D. Liabilities
7. Accounts receivable appears on the:
A. Income statement
B. Balance sheet ✅
C. Cash flow statement
D. Notes only
8. Which increases cash flow but not net income?
A. Revenue recognition
B. Depreciation ✅
C. Interest expense
D. Salaries
9. Which item is a long-term liability?
A. Accounts payable
B. Accrued wages
C. Bonds payable ✅
D. Prepaid expenses
10. Charity care is typically:
A. Recorded as revenue
B. Recorded as expense
