California Medical Billing Coding Exam
Questions And Correct Answer with Rational
(100% verified answer) Q & A 2026 /
Instant download PDF
1. What is the primary purpose of medical coding?
A. To prescribe medication
B. To translate medical services into standardized codes
C. To schedule surgeries
D. To prepare laboratory equipment
Correct Answer: B. Medical coding converts diagnoses, procedures, and services
into universal alphanumeric codes used for billing and recordkeeping.
2. Which coding system is primarily used for reporting diagnoses in the
United States?
A. CPT
B. HCPCS Level II
C. ICD-10-CM
D. DSM-5
Correct Answer: C. ICD-10-CM is the official diagnosis coding system used for
healthcare claims.
3. What does CPT stand for?
A. Clinical Procedure Terms
B. Current Procedural Terminology
C. Certified Patient Treatment
D. Coding Practice Techniques
,Correct Answer: B. CPT stands for Current Procedural Terminology and is used to
report medical procedures and services.
4. Which organization publishes CPT codes?
A. CMS
B. WHO
C. AMA
D. OSHA
Correct Answer: C. The American Medical Association (AMA) maintains and
publishes CPT codes.
5. What is the purpose of HCPCS Level II codes?
A. To report diagnoses only
B. To identify supplies, equipment, and non-physician services
C. To classify diseases internationally
D. To schedule appointments
Correct Answer: B. HCPCS Level II codes are used for medical supplies, ambulance
services, durable medical equipment, and certain medications.
6. Which section of CPT contains anesthesia codes?
A. 10000–19999
B. 00100–01999
C. 70000–79999
D. 80000–89999
Correct Answer: B. CPT anesthesia codes range from 00100 to 01999.
7. What does ICD-10-CM stand for?
A. International Classification of Diseases, 10th Revision, Clinical
Modification
B. Internal Coding Diagnosis Manual
C. Insurance Coding Data Management
D. International Clinical Data Method
, Correct Answer: A. ICD-10-CM is the diagnosis classification system used in the
U.S.
8. Which claim form is commonly used for physician services?
A. UB-04
B. CMS-1500
C. W-2
D. HIPAA-9
Correct Answer: B. The CMS-1500 form is used for outpatient and physician claims.
9. Which form is typically used by hospitals for billing?
A. CMS-1500
B. UB-04
C. IRS-1040
D. OSHA-300
Correct Answer: B. Hospitals and institutional providers use the UB-04 claim form.
10.What is upcoding?
A. Reporting a lower-level service than performed
B. Using outdated codes
C. Reporting a more expensive service than actually provided
D. Correcting denied claims
Correct Answer: C. Upcoding is fraudulent billing involving exaggerated service
reporting.
11.Which federal law protects patient health information?
A. EMTALA
B. HIPAA
C. OSHA
D. CLIA
Correct Answer: B. HIPAA protects patient privacy and healthcare information
security.
Questions And Correct Answer with Rational
(100% verified answer) Q & A 2026 /
Instant download PDF
1. What is the primary purpose of medical coding?
A. To prescribe medication
B. To translate medical services into standardized codes
C. To schedule surgeries
D. To prepare laboratory equipment
Correct Answer: B. Medical coding converts diagnoses, procedures, and services
into universal alphanumeric codes used for billing and recordkeeping.
2. Which coding system is primarily used for reporting diagnoses in the
United States?
A. CPT
B. HCPCS Level II
C. ICD-10-CM
D. DSM-5
Correct Answer: C. ICD-10-CM is the official diagnosis coding system used for
healthcare claims.
3. What does CPT stand for?
A. Clinical Procedure Terms
B. Current Procedural Terminology
C. Certified Patient Treatment
D. Coding Practice Techniques
,Correct Answer: B. CPT stands for Current Procedural Terminology and is used to
report medical procedures and services.
4. Which organization publishes CPT codes?
A. CMS
B. WHO
C. AMA
D. OSHA
Correct Answer: C. The American Medical Association (AMA) maintains and
publishes CPT codes.
5. What is the purpose of HCPCS Level II codes?
A. To report diagnoses only
B. To identify supplies, equipment, and non-physician services
C. To classify diseases internationally
D. To schedule appointments
Correct Answer: B. HCPCS Level II codes are used for medical supplies, ambulance
services, durable medical equipment, and certain medications.
6. Which section of CPT contains anesthesia codes?
A. 10000–19999
B. 00100–01999
C. 70000–79999
D. 80000–89999
Correct Answer: B. CPT anesthesia codes range from 00100 to 01999.
7. What does ICD-10-CM stand for?
A. International Classification of Diseases, 10th Revision, Clinical
Modification
B. Internal Coding Diagnosis Manual
C. Insurance Coding Data Management
D. International Clinical Data Method
, Correct Answer: A. ICD-10-CM is the diagnosis classification system used in the
U.S.
8. Which claim form is commonly used for physician services?
A. UB-04
B. CMS-1500
C. W-2
D. HIPAA-9
Correct Answer: B. The CMS-1500 form is used for outpatient and physician claims.
9. Which form is typically used by hospitals for billing?
A. CMS-1500
B. UB-04
C. IRS-1040
D. OSHA-300
Correct Answer: B. Hospitals and institutional providers use the UB-04 claim form.
10.What is upcoding?
A. Reporting a lower-level service than performed
B. Using outdated codes
C. Reporting a more expensive service than actually provided
D. Correcting denied claims
Correct Answer: C. Upcoding is fraudulent billing involving exaggerated service
reporting.
11.Which federal law protects patient health information?
A. EMTALA
B. HIPAA
C. OSHA
D. CLIA
Correct Answer: B. HIPAA protects patient privacy and healthcare information
security.
