HFMA CRCR – Healthcare Financial Exam
I Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which financial statement provides a snapshot of a healthcare
organization’s assets, liabilities, and equity at a specific point in
time?
a) Income Statement
b) Statement of Cash Flows
c) Balance Sheet
d) Statement of Operations
The balance sheet shows assets, liabilities, and equity at a
particular date, providing a snapshot of financial position.
2. What is the primary purpose of the revenue cycle in a healthcare
organization?
a) Manage payroll expenses
b) Ensure accurate and timely collection of patient service
revenue
c) Develop investment strategies
d) Conduct financial audits
The revenue cycle encompasses all administrative and clinical
functions that contribute to capturing, managing, and collecting
patient service revenue.
,3. What does the term “payer mix” refer to in healthcare finance?
a) Percentage of patients who use telehealth
b) The proportion of revenue coming from different payers, such
as Medicare, Medicaid, and commercial insurers
c) Mix of inpatient and outpatient services
d) Ratio of medical to administrative staff
Payer mix reflects the distribution of an organization’s revenue
sources by payer type, which affects financial planning.
4. In healthcare accounting, what is considered a fixed cost?
a) Cost of medical supplies per patient
b) Rent for the hospital building
c) Laboratory test costs
d) Surgical implants
Fixed costs remain constant regardless of patient volume, such
as rent or salaried staff.
5. What is the purpose of a charge master in a hospital?
a) Record employee schedules
b) Track patient satisfaction
c) List all billable services and their charges
d) Manage inventory of medical supplies
The charge master is a comprehensive listing of services,
procedures, and items a hospital bills for.
6. What financial metric measures how efficiently a hospital converts
patient services into cash?
a) Days in Accounts Payable
b) Days in Accounts Receivable
c) Debt-to-Equity Ratio
, d) Operating Margin
Days in Accounts Receivable tracks the average number of days
it takes to collect payments from patients and insurers.
7. What is an operating margin?
a) The total hospital assets divided by liabilities
b) Cash on hand divided by monthly expenses
c) The difference between operating revenues and operating
expenses, expressed as a percentage
d) The ratio of long-term debt to equity
Operating margin reflects profitability from core operations,
excluding non-operating revenue or expenses.
8. Which regulatory body oversees Medicare reimbursement
policies?
a) CDC
b) FDA
c) Centers for Medicare & Medicaid Services (CMS)
d) Joint Commission
CMS administers Medicare and Medicaid programs and sets
reimbursement rules for providers.
9. Which of the following is a non-operating revenue source for a
hospital?
a) Patient service revenue
b) Investment income
c) Inpatient services
d) Outpatient procedures
Non-operating revenue comes from sources not related to core
patient care operations, like interest or donations.
, 10. What is the primary purpose of cost allocation in healthcare
finance?
a) Reduce payroll
b) Increase patient visits
c) Assign indirect costs to departments or services to reflect true
resource use
d) Negotiate insurance contracts
Cost allocation distributes shared costs to individual
departments to accurately measure the cost of services.
11. What is the significance of Medicare’s DRG system?
a) Determines hospital supply inventory
b) Tracks patient satisfaction
c) Standardizes payments for inpatient hospital services based
on diagnosis
d) Measures hospital operating margin
Diagnosis-Related Groups (DRGs) classify inpatient cases to
determine Medicare reimbursement rates.
12. Which financial ratio indicates a hospital’s ability to meet
short-term obligations?
a) Debt-to-Equity Ratio
b) Current Ratio
c) Operating Margin
d) Return on Assets
The current ratio compares current assets to current liabilities to
evaluate liquidity.
13. In healthcare finance, “write-offs” typically refer to:
a) Salary adjustments
I Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which financial statement provides a snapshot of a healthcare
organization’s assets, liabilities, and equity at a specific point in
time?
a) Income Statement
b) Statement of Cash Flows
c) Balance Sheet
d) Statement of Operations
The balance sheet shows assets, liabilities, and equity at a
particular date, providing a snapshot of financial position.
2. What is the primary purpose of the revenue cycle in a healthcare
organization?
a) Manage payroll expenses
b) Ensure accurate and timely collection of patient service
revenue
c) Develop investment strategies
d) Conduct financial audits
The revenue cycle encompasses all administrative and clinical
functions that contribute to capturing, managing, and collecting
patient service revenue.
,3. What does the term “payer mix” refer to in healthcare finance?
a) Percentage of patients who use telehealth
b) The proportion of revenue coming from different payers, such
as Medicare, Medicaid, and commercial insurers
c) Mix of inpatient and outpatient services
d) Ratio of medical to administrative staff
Payer mix reflects the distribution of an organization’s revenue
sources by payer type, which affects financial planning.
4. In healthcare accounting, what is considered a fixed cost?
a) Cost of medical supplies per patient
b) Rent for the hospital building
c) Laboratory test costs
d) Surgical implants
Fixed costs remain constant regardless of patient volume, such
as rent or salaried staff.
5. What is the purpose of a charge master in a hospital?
a) Record employee schedules
b) Track patient satisfaction
c) List all billable services and their charges
d) Manage inventory of medical supplies
The charge master is a comprehensive listing of services,
procedures, and items a hospital bills for.
6. What financial metric measures how efficiently a hospital converts
patient services into cash?
a) Days in Accounts Payable
b) Days in Accounts Receivable
c) Debt-to-Equity Ratio
, d) Operating Margin
Days in Accounts Receivable tracks the average number of days
it takes to collect payments from patients and insurers.
7. What is an operating margin?
a) The total hospital assets divided by liabilities
b) Cash on hand divided by monthly expenses
c) The difference between operating revenues and operating
expenses, expressed as a percentage
d) The ratio of long-term debt to equity
Operating margin reflects profitability from core operations,
excluding non-operating revenue or expenses.
8. Which regulatory body oversees Medicare reimbursement
policies?
a) CDC
b) FDA
c) Centers for Medicare & Medicaid Services (CMS)
d) Joint Commission
CMS administers Medicare and Medicaid programs and sets
reimbursement rules for providers.
9. Which of the following is a non-operating revenue source for a
hospital?
a) Patient service revenue
b) Investment income
c) Inpatient services
d) Outpatient procedures
Non-operating revenue comes from sources not related to core
patient care operations, like interest or donations.
, 10. What is the primary purpose of cost allocation in healthcare
finance?
a) Reduce payroll
b) Increase patient visits
c) Assign indirect costs to departments or services to reflect true
resource use
d) Negotiate insurance contracts
Cost allocation distributes shared costs to individual
departments to accurately measure the cost of services.
11. What is the significance of Medicare’s DRG system?
a) Determines hospital supply inventory
b) Tracks patient satisfaction
c) Standardizes payments for inpatient hospital services based
on diagnosis
d) Measures hospital operating margin
Diagnosis-Related Groups (DRGs) classify inpatient cases to
determine Medicare reimbursement rates.
12. Which financial ratio indicates a hospital’s ability to meet
short-term obligations?
a) Debt-to-Equity Ratio
b) Current Ratio
c) Operating Margin
d) Return on Assets
The current ratio compares current assets to current liabilities to
evaluate liquidity.
13. In healthcare finance, “write-offs” typically refer to:
a) Salary adjustments
