REVENUE CYCLE MANAGEMENT EXAMINATION
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Revenue Cycle Management (RCM) refers to:
A. The financial process of managing patient service revenue
B. Hospital construction planning
C. Parking management only
D. Cafeteria operations only
Answer: A
Rationale: RCM manages the financial lifecycle of patient care services.
2. The revenue cycle begins when:
A. A patient schedules an appointment
B. A bill is paid completely
C. Payroll is processed
D. A patient is discharged only
Answer: A
Rationale: RCM starts with patient registration and scheduling.
3. Patient registration is important because it:
A. Collects demographic and insurance information
B. Eliminates billing requirements
C. Reduces communication
D. Ignores compliance standards
Answer: A
Rationale: Accurate registration supports billing and patient identification.
,4. Insurance verification helps healthcare organizations:
A. Confirm patient coverage before services are provided
B. Eliminate claims processing
C. Ignore reimbursement policies
D. Reduce patient communication
Answer: A
Rationale: Verification reduces claim denials and payment delays.
5. Medical coding is the process of:
A. Assigning standardized codes to diagnoses and procedures
B. Scheduling patient appointments
C. Managing payroll only
D. Conducting laboratory tests only
Answer: A
Rationale: Coding supports billing and reimbursement.
6. CPT codes are primarily used to report:
A. Medical procedures and services
B. Employee schedules only
C. Parking assignments only
D. Hospital construction plans only
Answer: A
Rationale: CPT codes standardize reporting of procedures.
7. ICD-10 codes are used to classify:
A. Diagnoses and medical conditions
B. Payroll reports only
C. Cafeteria inventories only
D. Landscaping schedules only
Answer: A
Rationale: ICD-10 coding supports diagnoses documentation.
, 8. Claims submission involves:
A. Sending billing information to insurance companies
B. Scheduling appointments only
C. Managing employee benefits only
D. Preparing cafeteria menus only
Answer: A
Rationale: Claims submission requests payment for services.
9. A clean claim is a claim that:
A. Contains accurate and complete information
B. Requires multiple corrections
C. Is submitted late intentionally
D. Lacks patient information
Answer: A
Rationale: Clean claims are processed faster with fewer denials.
10. Revenue cycle management aims to:
A. Optimize financial performance and reimbursement
B. Eliminate documentation
C. Reduce patient care quality
D. Ignore compliance regulations
Answer: A
Rationale: Effective RCM improves financial stability.
11. A copayment is:
A. The patient’s share of healthcare costs paid at service time
B. An insurance premium only
C. A payroll deduction only
D. A parking fee only
Answer: A
Rationale: Copayments are required by many insurance plans.
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Revenue Cycle Management (RCM) refers to:
A. The financial process of managing patient service revenue
B. Hospital construction planning
C. Parking management only
D. Cafeteria operations only
Answer: A
Rationale: RCM manages the financial lifecycle of patient care services.
2. The revenue cycle begins when:
A. A patient schedules an appointment
B. A bill is paid completely
C. Payroll is processed
D. A patient is discharged only
Answer: A
Rationale: RCM starts with patient registration and scheduling.
3. Patient registration is important because it:
A. Collects demographic and insurance information
B. Eliminates billing requirements
C. Reduces communication
D. Ignores compliance standards
Answer: A
Rationale: Accurate registration supports billing and patient identification.
,4. Insurance verification helps healthcare organizations:
A. Confirm patient coverage before services are provided
B. Eliminate claims processing
C. Ignore reimbursement policies
D. Reduce patient communication
Answer: A
Rationale: Verification reduces claim denials and payment delays.
5. Medical coding is the process of:
A. Assigning standardized codes to diagnoses and procedures
B. Scheduling patient appointments
C. Managing payroll only
D. Conducting laboratory tests only
Answer: A
Rationale: Coding supports billing and reimbursement.
6. CPT codes are primarily used to report:
A. Medical procedures and services
B. Employee schedules only
C. Parking assignments only
D. Hospital construction plans only
Answer: A
Rationale: CPT codes standardize reporting of procedures.
7. ICD-10 codes are used to classify:
A. Diagnoses and medical conditions
B. Payroll reports only
C. Cafeteria inventories only
D. Landscaping schedules only
Answer: A
Rationale: ICD-10 coding supports diagnoses documentation.
, 8. Claims submission involves:
A. Sending billing information to insurance companies
B. Scheduling appointments only
C. Managing employee benefits only
D. Preparing cafeteria menus only
Answer: A
Rationale: Claims submission requests payment for services.
9. A clean claim is a claim that:
A. Contains accurate and complete information
B. Requires multiple corrections
C. Is submitted late intentionally
D. Lacks patient information
Answer: A
Rationale: Clean claims are processed faster with fewer denials.
10. Revenue cycle management aims to:
A. Optimize financial performance and reimbursement
B. Eliminate documentation
C. Reduce patient care quality
D. Ignore compliance regulations
Answer: A
Rationale: Effective RCM improves financial stability.
11. A copayment is:
A. The patient’s share of healthcare costs paid at service time
B. An insurance premium only
C. A payroll deduction only
D. A parking fee only
Answer: A
Rationale: Copayments are required by many insurance plans.
