CPPM ACTUAL 2026/2027 EXAM TEST QUESTIONS AND
SOLUTIONS RATED A+
✔✔Procedure Code Sets - ✔✔ICD 9 CM Volume II (hospital inpt charges)
HCPCS Level II
CPT
✔✔CPT & HCPCS Dates - ✔✔1/1
✔✔ICD 9 Dates - ✔✔10/1
✔✔Bad Debt write-offs - ✔✔Bad Debt write offs are adjustments taht will result in no
collections
✔✔Bad Debt Ration Formula - ✔✔Total bad debt for period ./. Total charges for period
✔✔State Prompt Payment Laws - ✔✔If payments are late by insurance companies
✔✔The following will NOT prevent claim denials - ✔✔Provide medical documentation
with an appeal letter to support the service rendered
✔✔The Income Statement - ✔✔Provides a picture of the revenues expenses and net
income for a specified period of time, summary of a company's profit and loss during a
period of time.
Organized by the use of the chart of accounts
✔✔Balance Sheet - ✔✔Snapshot of business's financial condition at a specific time
assets, liabilities, & stockholders equity. Used to take to banks for loans.
✔✔Cash Flow Statement - ✔✔Financial statement used to maintain awareness of funds
to support ongoing business operations
✔✔Break Even Point - ✔✔Point where revenues for services minus all variables
expenses & add'l revenue will start creating a profit for the business.
✔✔OSHA Rules - ✔✔Procedures for reporting a file
Evacuation procedures during an emergency
fire extinguisher locations
Emergency contacts & Info
Designated meeting location
Staff assignments & responses
✔✔Revenue Per Visit (RPV) Calculated - ✔✔Review payor contracts = Total amount
collected ./. Total # patient visits
, ✔✔Days in A/R Formula - ✔✔Total A/R ./. Total Charges * # of days for charges
✔✔Medical Necessity - ✔✔Most important criteria for E&M
✔✔Assests - ✔✔liabilities & equity
✔✔A scenario that would generally be preferable to purchase equipment instead of
leasing - ✔✔A clinic has a strong bank account and plans on using equipment for a long
period of time.
✔✔Developing a Budget. What should be considered? - ✔✔Balance Sheet, Chart of
Accounts, Expenses from the current/past year
✔✔The basic purpose of instilling financial controls in an accounting process is to: -
✔✔Separate basic functions so not all are performed by the same person
✔✔What should not be considered or counted as revenue? - ✔✔Marketing fees
✔✔What is True regarding accural based accounting? - ✔✔Your income statement will
not reflect true cash for the defined period, expenses are recorded at the beginning of
the month.
✔✔What does not represent the effective use of a budget? - ✔✔To monitor the debt to
equity ratio of a clinic
✔✔What are the most common areas to evaluate for effectively reduce practice costs? -
✔✔Malpractce Insurance discounts, Curretn phone and date plans, Evalutate purcased
services, Supply cost
✔✔What term refers to the profit the practice made over a period of time, while
reviewing the Income Statement? - ✔✔Net Income
✔✔When looking at where a clinic might be able to cut costs, which financial statement
is most useful? - ✔✔Income Statement
✔✔Activity based costing - ✔✔Identify cost of machine, Therapists time to perform the
test and supplies needed.
✔✔What are common fixed expenses? - ✔✔Salaries, Rent, Malpractice
✔✔What would be the most beneficial in managing costs? - ✔✔Participation in a GPO
SOLUTIONS RATED A+
✔✔Procedure Code Sets - ✔✔ICD 9 CM Volume II (hospital inpt charges)
HCPCS Level II
CPT
✔✔CPT & HCPCS Dates - ✔✔1/1
✔✔ICD 9 Dates - ✔✔10/1
✔✔Bad Debt write-offs - ✔✔Bad Debt write offs are adjustments taht will result in no
collections
✔✔Bad Debt Ration Formula - ✔✔Total bad debt for period ./. Total charges for period
✔✔State Prompt Payment Laws - ✔✔If payments are late by insurance companies
✔✔The following will NOT prevent claim denials - ✔✔Provide medical documentation
with an appeal letter to support the service rendered
✔✔The Income Statement - ✔✔Provides a picture of the revenues expenses and net
income for a specified period of time, summary of a company's profit and loss during a
period of time.
Organized by the use of the chart of accounts
✔✔Balance Sheet - ✔✔Snapshot of business's financial condition at a specific time
assets, liabilities, & stockholders equity. Used to take to banks for loans.
✔✔Cash Flow Statement - ✔✔Financial statement used to maintain awareness of funds
to support ongoing business operations
✔✔Break Even Point - ✔✔Point where revenues for services minus all variables
expenses & add'l revenue will start creating a profit for the business.
✔✔OSHA Rules - ✔✔Procedures for reporting a file
Evacuation procedures during an emergency
fire extinguisher locations
Emergency contacts & Info
Designated meeting location
Staff assignments & responses
✔✔Revenue Per Visit (RPV) Calculated - ✔✔Review payor contracts = Total amount
collected ./. Total # patient visits
, ✔✔Days in A/R Formula - ✔✔Total A/R ./. Total Charges * # of days for charges
✔✔Medical Necessity - ✔✔Most important criteria for E&M
✔✔Assests - ✔✔liabilities & equity
✔✔A scenario that would generally be preferable to purchase equipment instead of
leasing - ✔✔A clinic has a strong bank account and plans on using equipment for a long
period of time.
✔✔Developing a Budget. What should be considered? - ✔✔Balance Sheet, Chart of
Accounts, Expenses from the current/past year
✔✔The basic purpose of instilling financial controls in an accounting process is to: -
✔✔Separate basic functions so not all are performed by the same person
✔✔What should not be considered or counted as revenue? - ✔✔Marketing fees
✔✔What is True regarding accural based accounting? - ✔✔Your income statement will
not reflect true cash for the defined period, expenses are recorded at the beginning of
the month.
✔✔What does not represent the effective use of a budget? - ✔✔To monitor the debt to
equity ratio of a clinic
✔✔What are the most common areas to evaluate for effectively reduce practice costs? -
✔✔Malpractce Insurance discounts, Curretn phone and date plans, Evalutate purcased
services, Supply cost
✔✔What term refers to the profit the practice made over a period of time, while
reviewing the Income Statement? - ✔✔Net Income
✔✔When looking at where a clinic might be able to cut costs, which financial statement
is most useful? - ✔✔Income Statement
✔✔Activity based costing - ✔✔Identify cost of machine, Therapists time to perform the
test and supplies needed.
✔✔What are common fixed expenses? - ✔✔Salaries, Rent, Malpractice
✔✔What would be the most beneficial in managing costs? - ✔✔Participation in a GPO
