CPPM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
◉ AR (accounts receivable)
Answer: The total charges entered that have not been collected.
◉ Formula to identify days in AR
Answer: Total AR (divided by)
Total Charges/# of days for charges
◉ Income
Expenses
Assets
Liabilities
Equity
Answer: Most common account types in a medical office.
◉ Recognizes revenue only when cash is collected and recognizes
expenses only when cash is paid
Answer: Cash-based accounting method
,◉ Recognizes revenue when earned and expenses when incurred
Answer: Accrual-based accounting method
◉ Total of charges entered for services prior to contractual or
other adjustments.
Answer: Gross revenue
◉ total of collections that is actually coming into the clinic after
applying contractual adjustments or write-offs to the gross
revenue number.
Answer: Net revenue collections
◉ Comparison of two financial figures
Answer: Ratio
◉ All money that is owed to someone else
Answer: accounts payable.
◉ All money that is owed to the practice
Answer: Accounts receivable
◉ Accounting attempts to apply cost to each activity providing an
accurate measure of cost and benefit.
Answer: Activity Based costing (ABC)
, ◉ A snapshot of a business's financial condition at a specific point
in time.
Answer: Balance Sheet
◉ A summary of a practices profit or loss during any given period,
such as one month, one quarter, or one year.
Answer: Income statment
◉ When reviewing payer contracts, how is the
RPV (Revenue per Visit) Calculated?
Answer: Total collected $ for all Services
_______________________________________________
Number of Patient visits = RPV
◉ composed of work value unit (wRVU) + practice expense value
unit (pRVU) + malpractice expense value unit (mRVU)
Answer: RVU (Relative Value Units)
◉ the service revenue less total variable costs that equals the
fixed cost of providing the service (including annualized
allocation of investment cost)
Answer: Break even point
◉ Fixed cost +Annual equipment cost
AND CORRECT ANSWERS
◉ AR (accounts receivable)
Answer: The total charges entered that have not been collected.
◉ Formula to identify days in AR
Answer: Total AR (divided by)
Total Charges/# of days for charges
◉ Income
Expenses
Assets
Liabilities
Equity
Answer: Most common account types in a medical office.
◉ Recognizes revenue only when cash is collected and recognizes
expenses only when cash is paid
Answer: Cash-based accounting method
,◉ Recognizes revenue when earned and expenses when incurred
Answer: Accrual-based accounting method
◉ Total of charges entered for services prior to contractual or
other adjustments.
Answer: Gross revenue
◉ total of collections that is actually coming into the clinic after
applying contractual adjustments or write-offs to the gross
revenue number.
Answer: Net revenue collections
◉ Comparison of two financial figures
Answer: Ratio
◉ All money that is owed to someone else
Answer: accounts payable.
◉ All money that is owed to the practice
Answer: Accounts receivable
◉ Accounting attempts to apply cost to each activity providing an
accurate measure of cost and benefit.
Answer: Activity Based costing (ABC)
, ◉ A snapshot of a business's financial condition at a specific point
in time.
Answer: Balance Sheet
◉ A summary of a practices profit or loss during any given period,
such as one month, one quarter, or one year.
Answer: Income statment
◉ When reviewing payer contracts, how is the
RPV (Revenue per Visit) Calculated?
Answer: Total collected $ for all Services
_______________________________________________
Number of Patient visits = RPV
◉ composed of work value unit (wRVU) + practice expense value
unit (pRVU) + malpractice expense value unit (mRVU)
Answer: RVU (Relative Value Units)
◉ the service revenue less total variable costs that equals the
fixed cost of providing the service (including annualized
allocation of investment cost)
Answer: Break even point
◉ Fixed cost +Annual equipment cost
