Practice for CPPM Exam All Answers Correct
Financial Management
What is the primary difference between accrual accounting and cash-based accounting?
Options: a. Accrual accounting recognizes revenue when cash is collected, while cash-based accounting
recognizes revenue when earned; b. Accrual accounting recognizes revenue when cash is collected,
while cash-based accounting recognizes revenue when earned
Answer: b. Accrual accounting recognizes revenue when earned, while cash-based accounting
recognizes revenue when collected
What is the purpose of a chart of accounts?
Options: a. To list all potential accounts for financial information; b. To track only revenues and
expenses
Answer: a. To list all potential accounts for financial information
Efficiency and Effectiveness
What is the difference between efficiency and effectiveness?
Options: a. Efficiency is doing things right, effectiveness is doing the wrong things; b. Efficiency is doing
things right, effectiveness is doing the right things
Answer: b. Efficiency is doing things right, effectiveness is doing the right things
OSHA
What are some key elements of an OSHA plan?
Options: a. Evacuation procedures, fire extinguisher locations, emergency contacts; b. Reporting
procedures, evacuation procedures, fire extinguisher locations
Answer: b. Reporting procedures, evacuation procedures, fire extinguisher locations
Revenue and Cash Flow
, How is Revenue Per Visit (RPV) calculated?
Options: a. Total amount collected divided by total number of patient visits; b. Total number of patient
visits divided by total amount collected
Answer: a. Total amount collected divided by total number of patient visits
Quantitative Risk Analaysis ✅Measure of the probabilities of variouus adverse events & the likely extent
of the losses if a particular event occurs
EHR Date ✅1/1/2015 - Providers who have NOT implemented EHR will begin to see a reduction in
Medicare payment
Procedure Code Sets ✅ICD 9 CM Volume II (hospital input charges
HCPCS Level II
CPT
CPT & HCPCS Dates ✅1/1
ICD 9 Dates ✅10/1
Bad Debt Ratio ✅bad debt right offs are adjustments that will result in no collections
Bad Debt Ratio ✅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
Productivity Report ✅Details the volume of procedures being performed by each provider
Financial Management
What is the primary difference between accrual accounting and cash-based accounting?
Options: a. Accrual accounting recognizes revenue when cash is collected, while cash-based accounting
recognizes revenue when earned; b. Accrual accounting recognizes revenue when cash is collected,
while cash-based accounting recognizes revenue when earned
Answer: b. Accrual accounting recognizes revenue when earned, while cash-based accounting
recognizes revenue when collected
What is the purpose of a chart of accounts?
Options: a. To list all potential accounts for financial information; b. To track only revenues and
expenses
Answer: a. To list all potential accounts for financial information
Efficiency and Effectiveness
What is the difference between efficiency and effectiveness?
Options: a. Efficiency is doing things right, effectiveness is doing the wrong things; b. Efficiency is doing
things right, effectiveness is doing the right things
Answer: b. Efficiency is doing things right, effectiveness is doing the right things
OSHA
What are some key elements of an OSHA plan?
Options: a. Evacuation procedures, fire extinguisher locations, emergency contacts; b. Reporting
procedures, evacuation procedures, fire extinguisher locations
Answer: b. Reporting procedures, evacuation procedures, fire extinguisher locations
Revenue and Cash Flow
, How is Revenue Per Visit (RPV) calculated?
Options: a. Total amount collected divided by total number of patient visits; b. Total number of patient
visits divided by total amount collected
Answer: a. Total amount collected divided by total number of patient visits
Quantitative Risk Analaysis ✅Measure of the probabilities of variouus adverse events & the likely extent
of the losses if a particular event occurs
EHR Date ✅1/1/2015 - Providers who have NOT implemented EHR will begin to see a reduction in
Medicare payment
Procedure Code Sets ✅ICD 9 CM Volume II (hospital input charges
HCPCS Level II
CPT
CPT & HCPCS Dates ✅1/1
ICD 9 Dates ✅10/1
Bad Debt Ratio ✅bad debt right offs are adjustments that will result in no collections
Bad Debt Ratio ✅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
Productivity Report ✅Details the volume of procedures being performed by each provider
