HFMA's CSAF 2021, Certified Specialist
Accounting and Finance2025 Update |Complete
Exam Set Questions And Verified Answers
(solutions) | Get It 100% Accurate!!| Already
Passed A+
Contribution Margin - ✔✔ANSWER✔✔>>Difference between marginal revenue and
marginal cost.
Break-even point - ✔✔ANSWER✔✔>>Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
Overhead - ✔✔ANSWER✔✔>>Indirect Costs
Activity-based costing (ABC) - ✔✔ANSWER✔✔>>Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be incurred.
Three main types of Cost standards. - ✔✔ANSWER✔✔>>Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
Four Types of Individual Cost behaviors - ✔✔ANSWER✔✔>>Variable, Fixed Cost
Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
Three Principal Types of expense variances - ✔✔ANSWER✔✔>>Price, Volume, and
Efficiency
The 4 Primary payment methods used in managed care - ✔✔ANSWER✔✔>>Fee-for-
Service, Per Diem Rate, Case Rate, Capitation
Healthcare providers should develop different modeling tools depending on -
✔✔ANSWER✔✔>>the reimbursement method proposed in the contract
The general categories of provider excess loss insurance are - ✔✔ANSWER✔✔>>per-
person, aggregate, and carve-out.
,A Strategic Plan allows organizations to - ✔✔ANSWER✔✔>>have a clear plan as to
why they are in business and how they can stay in business in the future.
The main types of control budgets include - ✔✔ANSWER✔✔>>operating, capital, and
cash.
A budgeting process develops assumptions for the following: -
✔✔ANSWER✔✔>>Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per visit
Operating budget's statistical factors include - ✔✔ANSWER✔✔>>Historical statistics,
Historical relationship of department volume, anticipated effects of new programs,
clinical practice patters, covered lives in global payment risk programs, changes in
regulatory environment, technical developments, process improvements, marketing
efforts, demographic trends
The primary purpose of measuring productivity is - ✔✔ANSWER✔✔>>for management
to determine if resources are being used efficiently
Budget types include - ✔✔ANSWER✔✔>>fixed and flexible
The four budget variances used to explain by cause are - ✔✔ANSWER✔✔>>Volume,
rate (charged), price (of a supply), and efficiency (cost per procedure).
Three common Capital Evaluation techniques - ✔✔ANSWER✔✔>>Payback, Net
Present Value Method, Return on Investment
Users of ratio analysis - ✔✔ANSWER✔✔>>Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
The categories of ratios used - ✔✔ANSWER✔✔>>Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
Two common types of long-term debt - ✔✔ANSWER✔✔>>Revenue bonds and General
Obligation Bonds
Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons
- ✔✔ANSWER✔✔>>Take advantage of lower interest rates, change collateral
restrictions, allow acquisition of other assets, better fit debt service requriements
Healthcare bond issues place legal obligations on - ✔✔ANSWER✔✔>>the borrower
intended to protect the lender against default by the borrower.
,In order to use the discounted cash flow method - ✔✔ANSWER✔✔>>you need to know
the payment flow or payment pattern and the interest rate
Every capital investment proposal requires 4 quantifiable factors -
✔✔ANSWER✔✔>>Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of
funds
Three significant Investment valuation methods - ✔✔ANSWER✔✔>>Discounted cash
flow method, Replacement cost method, Market comparison
Two types of equity financing - ✔✔ANSWER✔✔>>Internal and External
In a capital lease, all of the benefits and risks of owner except title or ending (salvage
value) - ✔✔ANSWER✔✔>>get transferred to the lessee. The lessor recovers full price
and interest during the lease.
An operating lease is - ✔✔ANSWER✔✔>>when the hospital is liable for the leasing
cost; renewal options are determined by the fair market value
Advantages of leasing - ✔✔ANSWER✔✔>>working capital is conserved, budgetary
control, tax benefits may be realized, project may be financed 100%, lessee has greater
flexibility in replacing equipment
Disadvantages of leasing - ✔✔ANSWER✔✔>>Cost of extending the lease may be
more than the actual purchase price, Interest costs are higher than debt, third parties
will recognize a full lease payment as allowable only if a true operating lease, the
leasing company frequently passes the cost of property tax to the lessors
When issuing a rating on a specific organization, a rating agency will commonly
consider the following - ✔✔ANSWER✔✔>>Provisions or structure of the financing,
competitive environment and market position, medical staff characteristics,
management capability, financial
Methods of a Cash budget: - ✔✔ANSWER✔✔>>Cash receipts and disbursements
Method, Adjusted Net Income Method, Working Capital Differential Method
Primary purposes of a cash budget: - ✔✔ANSWER✔✔>>Identify cash requirements
and sources for a certain period of time, control the flow of cash funds
Healthcare organizations use commercial banking services for: -
✔✔ANSWER✔✔>>Controlled Disbursement Account, Depository Account,
Concentration Account and Zero Balance Account, Sweep Account
, The components incorporated in a cash budget: - ✔✔ANSWER✔✔>>Ability of the
organization to manage overall revenue cycle, projection of costs, variability in activities
that impact both revenues and expenses, regularly recurring or periodic expenses,
timing of capital purchases
An investment policy - ✔✔ANSWER✔✔>>Establishes a framework to make investment
decisions and evaluate results
The returns, risks, and correlation are the primary inputs for - ✔✔ANSWER✔✔>>asset
allocation models
Different types of asset allocation risks are as follows: - ✔✔ANSWER✔✔>>maturity
(liquidity) risk, interest rate risk, credit risk, political (legal) risk, market (price) risk
Three Internal control objectives: - ✔✔ANSWER✔✔>>Effectiveness and efficiency of
operations, Reliability of financial reporting (external and internal), compliance with
applicable laws and regulations
Sarbanes-Oxley established: - ✔✔ANSWER✔✔>>Enhanced standards for
accountability and penalties for wrongdoing.
Sarbanes-Oxley makes it so that CEOs and CFOs are responsible for: -
✔✔ANSWER✔✔>>Disclosure controls, ensuring specified information (controls) is
made known to them, regular evaluations of controls with quarterly certifications
PCAOB does: - ✔✔ANSWER✔✔>>Register public accounting firms, establish audit
standards, inspect accounting firms, disciplinary proceedings and appropriate sanctions,
PCAOB budget.
Components of auditor's attestation report: - ✔✔ANSWER✔✔>>Objective, Date,
Evaluation
Operational auditing is one technique available to - ✔✔ANSWER✔✔>>management to
ensure objectives and organizational policies are effectively carried out.
Current liabilities - ✔✔ANSWER✔✔>>are satisfied within a year of the balance sheet
date
Examples of current liabilities: - ✔✔ANSWER✔✔>>Notes payable to banks, current
portions of long-term debt, accounts payable, advances from and accounts payable to
third-party payers for reimbursement settlements, refunds, deferred revenue, accrued
salaries, current portion of malpractice costs
Accounting and Finance2025 Update |Complete
Exam Set Questions And Verified Answers
(solutions) | Get It 100% Accurate!!| Already
Passed A+
Contribution Margin - ✔✔ANSWER✔✔>>Difference between marginal revenue and
marginal cost.
Break-even point - ✔✔ANSWER✔✔>>Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
Overhead - ✔✔ANSWER✔✔>>Indirect Costs
Activity-based costing (ABC) - ✔✔ANSWER✔✔>>Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be incurred.
Three main types of Cost standards. - ✔✔ANSWER✔✔>>Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
Four Types of Individual Cost behaviors - ✔✔ANSWER✔✔>>Variable, Fixed Cost
Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
Three Principal Types of expense variances - ✔✔ANSWER✔✔>>Price, Volume, and
Efficiency
The 4 Primary payment methods used in managed care - ✔✔ANSWER✔✔>>Fee-for-
Service, Per Diem Rate, Case Rate, Capitation
Healthcare providers should develop different modeling tools depending on -
✔✔ANSWER✔✔>>the reimbursement method proposed in the contract
The general categories of provider excess loss insurance are - ✔✔ANSWER✔✔>>per-
person, aggregate, and carve-out.
,A Strategic Plan allows organizations to - ✔✔ANSWER✔✔>>have a clear plan as to
why they are in business and how they can stay in business in the future.
The main types of control budgets include - ✔✔ANSWER✔✔>>operating, capital, and
cash.
A budgeting process develops assumptions for the following: -
✔✔ANSWER✔✔>>Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per visit
Operating budget's statistical factors include - ✔✔ANSWER✔✔>>Historical statistics,
Historical relationship of department volume, anticipated effects of new programs,
clinical practice patters, covered lives in global payment risk programs, changes in
regulatory environment, technical developments, process improvements, marketing
efforts, demographic trends
The primary purpose of measuring productivity is - ✔✔ANSWER✔✔>>for management
to determine if resources are being used efficiently
Budget types include - ✔✔ANSWER✔✔>>fixed and flexible
The four budget variances used to explain by cause are - ✔✔ANSWER✔✔>>Volume,
rate (charged), price (of a supply), and efficiency (cost per procedure).
Three common Capital Evaluation techniques - ✔✔ANSWER✔✔>>Payback, Net
Present Value Method, Return on Investment
Users of ratio analysis - ✔✔ANSWER✔✔>>Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
The categories of ratios used - ✔✔ANSWER✔✔>>Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
Two common types of long-term debt - ✔✔ANSWER✔✔>>Revenue bonds and General
Obligation Bonds
Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons
- ✔✔ANSWER✔✔>>Take advantage of lower interest rates, change collateral
restrictions, allow acquisition of other assets, better fit debt service requriements
Healthcare bond issues place legal obligations on - ✔✔ANSWER✔✔>>the borrower
intended to protect the lender against default by the borrower.
,In order to use the discounted cash flow method - ✔✔ANSWER✔✔>>you need to know
the payment flow or payment pattern and the interest rate
Every capital investment proposal requires 4 quantifiable factors -
✔✔ANSWER✔✔>>Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of
funds
Three significant Investment valuation methods - ✔✔ANSWER✔✔>>Discounted cash
flow method, Replacement cost method, Market comparison
Two types of equity financing - ✔✔ANSWER✔✔>>Internal and External
In a capital lease, all of the benefits and risks of owner except title or ending (salvage
value) - ✔✔ANSWER✔✔>>get transferred to the lessee. The lessor recovers full price
and interest during the lease.
An operating lease is - ✔✔ANSWER✔✔>>when the hospital is liable for the leasing
cost; renewal options are determined by the fair market value
Advantages of leasing - ✔✔ANSWER✔✔>>working capital is conserved, budgetary
control, tax benefits may be realized, project may be financed 100%, lessee has greater
flexibility in replacing equipment
Disadvantages of leasing - ✔✔ANSWER✔✔>>Cost of extending the lease may be
more than the actual purchase price, Interest costs are higher than debt, third parties
will recognize a full lease payment as allowable only if a true operating lease, the
leasing company frequently passes the cost of property tax to the lessors
When issuing a rating on a specific organization, a rating agency will commonly
consider the following - ✔✔ANSWER✔✔>>Provisions or structure of the financing,
competitive environment and market position, medical staff characteristics,
management capability, financial
Methods of a Cash budget: - ✔✔ANSWER✔✔>>Cash receipts and disbursements
Method, Adjusted Net Income Method, Working Capital Differential Method
Primary purposes of a cash budget: - ✔✔ANSWER✔✔>>Identify cash requirements
and sources for a certain period of time, control the flow of cash funds
Healthcare organizations use commercial banking services for: -
✔✔ANSWER✔✔>>Controlled Disbursement Account, Depository Account,
Concentration Account and Zero Balance Account, Sweep Account
, The components incorporated in a cash budget: - ✔✔ANSWER✔✔>>Ability of the
organization to manage overall revenue cycle, projection of costs, variability in activities
that impact both revenues and expenses, regularly recurring or periodic expenses,
timing of capital purchases
An investment policy - ✔✔ANSWER✔✔>>Establishes a framework to make investment
decisions and evaluate results
The returns, risks, and correlation are the primary inputs for - ✔✔ANSWER✔✔>>asset
allocation models
Different types of asset allocation risks are as follows: - ✔✔ANSWER✔✔>>maturity
(liquidity) risk, interest rate risk, credit risk, political (legal) risk, market (price) risk
Three Internal control objectives: - ✔✔ANSWER✔✔>>Effectiveness and efficiency of
operations, Reliability of financial reporting (external and internal), compliance with
applicable laws and regulations
Sarbanes-Oxley established: - ✔✔ANSWER✔✔>>Enhanced standards for
accountability and penalties for wrongdoing.
Sarbanes-Oxley makes it so that CEOs and CFOs are responsible for: -
✔✔ANSWER✔✔>>Disclosure controls, ensuring specified information (controls) is
made known to them, regular evaluations of controls with quarterly certifications
PCAOB does: - ✔✔ANSWER✔✔>>Register public accounting firms, establish audit
standards, inspect accounting firms, disciplinary proceedings and appropriate sanctions,
PCAOB budget.
Components of auditor's attestation report: - ✔✔ANSWER✔✔>>Objective, Date,
Evaluation
Operational auditing is one technique available to - ✔✔ANSWER✔✔>>management to
ensure objectives and organizational policies are effectively carried out.
Current liabilities - ✔✔ANSWER✔✔>>are satisfied within a year of the balance sheet
date
Examples of current liabilities: - ✔✔ANSWER✔✔>>Notes payable to banks, current
portions of long-term debt, accounts payable, advances from and accounts payable to
third-party payers for reimbursement settlements, refunds, deferred revenue, accrued
salaries, current portion of malpractice costs
