HFMA CRCR – Healthcare Financial
Exam With Actual Questions & Verified
Answers ,Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of cost accounting in healthcare
organizations?
A. To track patient satisfaction
B. To determine the cost of services C. To assess regulatory
compliance
D. To develop marketing strategies
Answer: B
Rationale: Cost accounting in healthcare focuses on
determining the cost of providing services to support financial
management and pricing decisions.
2. Which of the following best describes the term “accounts
receivable days”?
A. The time it takes to pay vendors
B. The time a patient spends in a hospital
C. The average number of days to collect payment D. The time
between service delivery and payment receipt
Answer: D
Rationale: Accounts receivable days measure how long it
, takes a healthcare organization to collect payments after
services are rendered.
3. What is a primary function of the chargemaster?
A. To record employee hours
B. To track inventory
C. To list all billable services D. To determine service prices for
billing
Answer: D
Rationale: The chargemaster contains all billable services and
their associated charges, forming the basis for billing patients
and payers.
4. Which of the following is a characteristic of managed care?
A. Unlimited provider choice
B. Fee-for-service payment only
C. Cost control and utilization review D. No pre-authorization
requirement
Answer: C
Rationale: Managed care emphasizes cost containment and
utilization management to reduce unnecessary healthcare
expenses.
5. Which statement best describes the concept of “capitation”?
A. Providers are paid per procedure
B. Providers are reimbursed based on total costs C. Providers
receive a fixed amount per patient
D. Providers bill only for emergency services
Answer: C
Rationale: Capitation is a payment model where providers
receive a fixed amount per enrolled patient regardless of
services rendered.
,6. Which is the primary goal of revenue cycle management?
A. Increase patient satisfaction
B. Improve clinical outcomes
C. Maximize timely collection of payments D. Minimize hospital
length of stay
Answer: C
Rationale: Revenue cycle management focuses on ensuring
that healthcare organizations collect appropriate payments
efficiently.
7. What is the primary purpose of a cost report?
A. To detail patient satisfaction metrics
B. To guide investment decisions
C. To provide cost data to CMS for reimbursement
D. To evaluate physician performance
Answer: C
Rationale: Cost reports summarize hospital costs and are
submitted to the Centers for Medicare & Medicaid Services
(CMS) for reimbursement purposes.
8. Which of the following best defines uncompensated care?
A. Services reimbursed by insurance
B. Care provided without payment from the patient or insurer
C. Care fully covered by Medicare
D. Services paid in advance by patients
Answer: B
Rationale: Uncompensated care includes charity care and bad
debt—services for which the provider receives no payment.
9. Which metric measures the profitability of individual services?
A. Operating margin
B. Contribution margin
, C. Accounts receivable turnover
D. Debt-to-equity ratio
Answer: B
Rationale: Contribution margin analysis assesses the
profitability of individual services by subtracting variable costs
from revenue.
10. What does DRG stand for in hospital reimbursement?
A. Direct Resource Guide
B. Departmental Revenue Group
C. Diagnosis-Related Group
D. Differential Reimbursement Grade
Answer: C
Rationale: DRGs categorize hospital cases for Medicare
reimbursement, assigning payments based on diagnosis and
resource usage.
11. Which component is included in a hospital’s operating
margin calculation?
A. Investment income only
B. Charity care
C. Depreciation only
D. Total operating revenue minus operating expenses
Answer: D
Rationale: Operating margin is calculated as the difference
between total operating revenue and operating expenses.
12. Which is a key factor in determining a hospital’s liquidity?
A. Staff turnover
B. Current ratio
C. Patient satisfaction scores
D. Accreditation status
Exam With Actual Questions & Verified
Answers ,Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of cost accounting in healthcare
organizations?
A. To track patient satisfaction
B. To determine the cost of services C. To assess regulatory
compliance
D. To develop marketing strategies
Answer: B
Rationale: Cost accounting in healthcare focuses on
determining the cost of providing services to support financial
management and pricing decisions.
2. Which of the following best describes the term “accounts
receivable days”?
A. The time it takes to pay vendors
B. The time a patient spends in a hospital
C. The average number of days to collect payment D. The time
between service delivery and payment receipt
Answer: D
Rationale: Accounts receivable days measure how long it
, takes a healthcare organization to collect payments after
services are rendered.
3. What is a primary function of the chargemaster?
A. To record employee hours
B. To track inventory
C. To list all billable services D. To determine service prices for
billing
Answer: D
Rationale: The chargemaster contains all billable services and
their associated charges, forming the basis for billing patients
and payers.
4. Which of the following is a characteristic of managed care?
A. Unlimited provider choice
B. Fee-for-service payment only
C. Cost control and utilization review D. No pre-authorization
requirement
Answer: C
Rationale: Managed care emphasizes cost containment and
utilization management to reduce unnecessary healthcare
expenses.
5. Which statement best describes the concept of “capitation”?
A. Providers are paid per procedure
B. Providers are reimbursed based on total costs C. Providers
receive a fixed amount per patient
D. Providers bill only for emergency services
Answer: C
Rationale: Capitation is a payment model where providers
receive a fixed amount per enrolled patient regardless of
services rendered.
,6. Which is the primary goal of revenue cycle management?
A. Increase patient satisfaction
B. Improve clinical outcomes
C. Maximize timely collection of payments D. Minimize hospital
length of stay
Answer: C
Rationale: Revenue cycle management focuses on ensuring
that healthcare organizations collect appropriate payments
efficiently.
7. What is the primary purpose of a cost report?
A. To detail patient satisfaction metrics
B. To guide investment decisions
C. To provide cost data to CMS for reimbursement
D. To evaluate physician performance
Answer: C
Rationale: Cost reports summarize hospital costs and are
submitted to the Centers for Medicare & Medicaid Services
(CMS) for reimbursement purposes.
8. Which of the following best defines uncompensated care?
A. Services reimbursed by insurance
B. Care provided without payment from the patient or insurer
C. Care fully covered by Medicare
D. Services paid in advance by patients
Answer: B
Rationale: Uncompensated care includes charity care and bad
debt—services for which the provider receives no payment.
9. Which metric measures the profitability of individual services?
A. Operating margin
B. Contribution margin
, C. Accounts receivable turnover
D. Debt-to-equity ratio
Answer: B
Rationale: Contribution margin analysis assesses the
profitability of individual services by subtracting variable costs
from revenue.
10. What does DRG stand for in hospital reimbursement?
A. Direct Resource Guide
B. Departmental Revenue Group
C. Diagnosis-Related Group
D. Differential Reimbursement Grade
Answer: C
Rationale: DRGs categorize hospital cases for Medicare
reimbursement, assigning payments based on diagnosis and
resource usage.
11. Which component is included in a hospital’s operating
margin calculation?
A. Investment income only
B. Charity care
C. Depreciation only
D. Total operating revenue minus operating expenses
Answer: D
Rationale: Operating margin is calculated as the difference
between total operating revenue and operating expenses.
12. Which is a key factor in determining a hospital’s liquidity?
A. Staff turnover
B. Current ratio
C. Patient satisfaction scores
D. Accreditation status
