Practice for CPPM Exam – Certified Physician Practice Manager (comprehensive
practice questions and study guide)
*Efficiency - correct answer ✔✔Process & doing things right
*Effectiveness - correct answer ✔✔Outcomes & doing the right thing
Accrual Accounting - correct answer ✔✔Records revenues when they are earned & expenses
when they have been accrued. Provides a more accurate reflection of your current financial
situation
Cash Based Accounting - correct answer ✔✔Recognizes revenue only when cash is collected &
expenses when cash is paid. Provides a truer reflection of actual cash on hand & requires less
reconciliation
Chart of Accounts - correct answer ✔✔Lists all potential accounts for all financial information
(income, expenses, assets, liabilities, equities
Income Statement - correct answer ✔✔Records all revenues & expenses associated with the
business for a specified time. Summary of a company's profit or loss during a given period
Balance Sheet - correct answer ✔✔Snapshot of buisness' financial condition at specific time.
Includes values for assets, liabilities & stockholders equity
Cash Flow Statement - correct answer ✔✔Financial statement used to maintain awareness of
funds (cash available) to support ongoing business operations
Break Even Point - correct answer ✔✔Point where revenues for services minus all variable
expenses = the fixed expenses & add'l revenue will start creating a profit for the business
, OSHA - correct answer ✔✔*Procedures for reporting a file
* Evacuatin procedures during emergency
*fire extinguisher locations
* Emergency contacts & info
* Designated meeting location
* Staff assignments & responses
**Revenue Per Visit (RPV) Calculated - correct answer ✔✔Review payor contracts = Toal
amount collected ./. total # pt visits
**Days in A/R formula - correct answer ✔✔total A/R ./. (total charges ./. total days in A/R
(i.e. $558039 ./. ($700,00 ./. 60)
Medical Necessity - correct answer ✔✔Most important criteria for E&M
Days in A/R - correct answer ✔✔How long it takes to collect a charge. Good is less than 40 days
**Days in A/R forumula - correct answer ✔✔Total A/R ./. Total charges ./. # of days for charges
Assests = - correct answer ✔✔liabilities & equity
Assests - correct answer ✔✔If assests are higher than liabilites, that's a good thing
**Net Collection Rate - correct answer ✔✔Total Receipts - Refunds ./. Total Charges -
Contractual Adj
practice questions and study guide)
*Efficiency - correct answer ✔✔Process & doing things right
*Effectiveness - correct answer ✔✔Outcomes & doing the right thing
Accrual Accounting - correct answer ✔✔Records revenues when they are earned & expenses
when they have been accrued. Provides a more accurate reflection of your current financial
situation
Cash Based Accounting - correct answer ✔✔Recognizes revenue only when cash is collected &
expenses when cash is paid. Provides a truer reflection of actual cash on hand & requires less
reconciliation
Chart of Accounts - correct answer ✔✔Lists all potential accounts for all financial information
(income, expenses, assets, liabilities, equities
Income Statement - correct answer ✔✔Records all revenues & expenses associated with the
business for a specified time. Summary of a company's profit or loss during a given period
Balance Sheet - correct answer ✔✔Snapshot of buisness' financial condition at specific time.
Includes values for assets, liabilities & stockholders equity
Cash Flow Statement - correct answer ✔✔Financial statement used to maintain awareness of
funds (cash available) to support ongoing business operations
Break Even Point - correct answer ✔✔Point where revenues for services minus all variable
expenses = the fixed expenses & add'l revenue will start creating a profit for the business
, OSHA - correct answer ✔✔*Procedures for reporting a file
* Evacuatin procedures during emergency
*fire extinguisher locations
* Emergency contacts & info
* Designated meeting location
* Staff assignments & responses
**Revenue Per Visit (RPV) Calculated - correct answer ✔✔Review payor contracts = Toal
amount collected ./. total # pt visits
**Days in A/R formula - correct answer ✔✔total A/R ./. (total charges ./. total days in A/R
(i.e. $558039 ./. ($700,00 ./. 60)
Medical Necessity - correct answer ✔✔Most important criteria for E&M
Days in A/R - correct answer ✔✔How long it takes to collect a charge. Good is less than 40 days
**Days in A/R forumula - correct answer ✔✔Total A/R ./. Total charges ./. # of days for charges
Assests = - correct answer ✔✔liabilities & equity
Assests - correct answer ✔✔If assests are higher than liabilites, that's a good thing
**Net Collection Rate - correct answer ✔✔Total Receipts - Refunds ./. Total Charges -
Contractual Adj
