NHA BILLING AND CODING Practice
Exam 2026| 250 Most Tested
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Questions 1–50: Coding Foundations
1. What is the primary purpose of medical coding?
A. To determine a patient's treatment plan
B. To calculate a provider's salary
C. To translate medical documentation into standardized codes
D. To schedule patient appointments
Answer: C. To translate medical documentation into standardized
codes
Rationale: Medical coders translate diagnoses, procedures, and
services documented in the medical record into standardized
classification codes used for billing, reporting, and data analysis.
2. Which coding system is primarily used to report diagnoses in the
United States?
A. CPT
B. ICD-10-CM
C. HCPCS Level II
D. NDC
Answer: B. ICD-10-CM
,Rationale: ICD-10-CM is the U.S. clinical modification of ICD-10 and is
primarily used to report diagnoses and conditions.
3. Which code set is primarily used to report physician procedures
and services?
A. ICD-10-CM
B. CPT
C. ICD-10-PCS
D. DRG
Answer: B. CPT
Rationale: Current Procedural Terminology (CPT) codes describe
many professional medical services and procedures.
4. What does CPT stand for?
A. Clinical Procedure Terminology
B. Current Procedural Terminology
C. Certified Physician Treatment
D. Clinical Payment Table
Answer: B. Current Procedural Terminology
Rationale: CPT is the standardized procedure and service coding
system maintained by the American Medical Association.
5. Which organization maintains CPT?
A. CMS
B. CDC
C. AMA
D. FDA
Answer: C. AMA
Rationale: The American Medical Association maintains the CPT code
set.
6. What does ICD stand for?
,A. International Classification of Diseases
B. Insurance Coding Database
C. International Clinical Documentation
D. Insurance Classification Directory
Answer: A. International Classification of Diseases
Rationale: ICD is the international classification system used to
classify diseases, conditions, and health-related circumstances.
7. Which code set is used primarily for inpatient hospital
procedures in the United States?
A. ICD-10-CM
B. CPT
C. ICD-10-PCS
D. HCPCS Level II
Answer: C. ICD-10-PCS
Rationale: ICD-10-PCS is used to report procedures performed on
hospital inpatients.
8. Which code set includes many codes beginning with a letter
followed by four numbers?
A. ICD-10-CM
B. CPT
C. HCPCS Level II
D. DRG
Answer: C. HCPCS Level II
Rationale: HCPCS Level II codes generally consist of one alphabetic
character followed by four digits.
9. What is a medical coder expected to use as the primary source
for code assignment?
, A. The patient's insurance card
B. The provider's documentation
C. The patient's employment record
D. The patient's appointment reminder
Answer: B. The provider's documentation
Rationale: Coding must be supported by appropriate clinical
documentation in the medical record.
10. What does the term "principal diagnosis" generally refer to in
inpatient coding?
A. The first symptom documented
B. The condition established after study to be chiefly responsible for
the admission
C. The most expensive diagnosis
D. The patient's chronic condition
Answer: B. The condition established after study to be chiefly
responsible for the admission
Rationale: The principal diagnosis is the condition determined after
evaluation to be chiefly responsible for the inpatient admission.
11. Which coding system is used for reporting diagnoses in
outpatient settings?
A. ICD-10-CM
B. ICD-10-PCS
C. DRG
D. APC only
Answer: A. ICD-10-CM
Rationale: ICD-10-CM is used to report diagnoses in both outpatient
and inpatient settings, while ICD-10-PCS is specific to inpatient
procedures.
12. What is the purpose of a coding guideline?
Exam 2026| 250 Most Tested
Questions Collection & Verified
Detailed Answers | Tutor Verified
Success Exam) Graded A+
Questions 1–50: Coding Foundations
1. What is the primary purpose of medical coding?
A. To determine a patient's treatment plan
B. To calculate a provider's salary
C. To translate medical documentation into standardized codes
D. To schedule patient appointments
Answer: C. To translate medical documentation into standardized
codes
Rationale: Medical coders translate diagnoses, procedures, and
services documented in the medical record into standardized
classification codes used for billing, reporting, and data analysis.
2. Which coding system is primarily used to report diagnoses in the
United States?
A. CPT
B. ICD-10-CM
C. HCPCS Level II
D. NDC
Answer: B. ICD-10-CM
,Rationale: ICD-10-CM is the U.S. clinical modification of ICD-10 and is
primarily used to report diagnoses and conditions.
3. Which code set is primarily used to report physician procedures
and services?
A. ICD-10-CM
B. CPT
C. ICD-10-PCS
D. DRG
Answer: B. CPT
Rationale: Current Procedural Terminology (CPT) codes describe
many professional medical services and procedures.
4. What does CPT stand for?
A. Clinical Procedure Terminology
B. Current Procedural Terminology
C. Certified Physician Treatment
D. Clinical Payment Table
Answer: B. Current Procedural Terminology
Rationale: CPT is the standardized procedure and service coding
system maintained by the American Medical Association.
5. Which organization maintains CPT?
A. CMS
B. CDC
C. AMA
D. FDA
Answer: C. AMA
Rationale: The American Medical Association maintains the CPT code
set.
6. What does ICD stand for?
,A. International Classification of Diseases
B. Insurance Coding Database
C. International Clinical Documentation
D. Insurance Classification Directory
Answer: A. International Classification of Diseases
Rationale: ICD is the international classification system used to
classify diseases, conditions, and health-related circumstances.
7. Which code set is used primarily for inpatient hospital
procedures in the United States?
A. ICD-10-CM
B. CPT
C. ICD-10-PCS
D. HCPCS Level II
Answer: C. ICD-10-PCS
Rationale: ICD-10-PCS is used to report procedures performed on
hospital inpatients.
8. Which code set includes many codes beginning with a letter
followed by four numbers?
A. ICD-10-CM
B. CPT
C. HCPCS Level II
D. DRG
Answer: C. HCPCS Level II
Rationale: HCPCS Level II codes generally consist of one alphabetic
character followed by four digits.
9. What is a medical coder expected to use as the primary source
for code assignment?
, A. The patient's insurance card
B. The provider's documentation
C. The patient's employment record
D. The patient's appointment reminder
Answer: B. The provider's documentation
Rationale: Coding must be supported by appropriate clinical
documentation in the medical record.
10. What does the term "principal diagnosis" generally refer to in
inpatient coding?
A. The first symptom documented
B. The condition established after study to be chiefly responsible for
the admission
C. The most expensive diagnosis
D. The patient's chronic condition
Answer: B. The condition established after study to be chiefly
responsible for the admission
Rationale: The principal diagnosis is the condition determined after
evaluation to be chiefly responsible for the inpatient admission.
11. Which coding system is used for reporting diagnoses in
outpatient settings?
A. ICD-10-CM
B. ICD-10-PCS
C. DRG
D. APC only
Answer: A. ICD-10-CM
Rationale: ICD-10-CM is used to report diagnoses in both outpatient
and inpatient settings, while ICD-10-PCS is specific to inpatient
procedures.
12. What is the purpose of a coding guideline?
