HFMA'S CSAF EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS || ALREADY GRADED A+ < LATEST VERSION >

HFMA'S CSAF EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS || ALREADY GRADED A+ &lt; LATEST VERSION &gt; 1. Contribution Margin - ANSWER Difference between marginal revenue and marginal cost. 2. Break-even point - ANSWER Level of sales volume of a product producing the exact amount of contribution margin needed to cover fixed costs. 3. Overhead - ANSWER Indirect Costs 4. Activity-based costing (ABC) - ANSWER Method of determining product costs using cost drivers or activity measures, which cause indirect costs to be incurred. 5. Three main types of Cost standards. - ANSWER Predetermined (Synthetic), Negotiated (Historical), and Customized (Engineered) 6. 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 7. An investment policy - ANSWER Establishes a framework to make investment decisions and evaluate results 8. The returns, risks, and correlation are the primary inputs for - ANSWER asset allocation models 9. Different types of asset allocation risks are as follows: - ANSWER maturity (liquidity) risk, interest rate risk, credit risk, political (legal) risk, market (price) risk 10. Three Internal control objectives: - ANSWER Effectiveness and efficiency of operations, Reliability of financial reporting (external and internal), compliance with applicable laws and regulations 11. Sarbanes-Oxley established: - ANSWER Enhanced standards for accountability and penalties for wrongdoing. 12. 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 13. PCAOB does: - ANSWER Register public accounting firms, establish audit standards, inspect accounting firms, disciplinary proceedings and appropriate sanctions, PCAOB budget. 14. Components of auditor's attestation report: - ANSWER Objective, Date, Evaluation 15. Operational auditing is one technique available to - ANSWER management to ensure objectives and organizational policies are effectively carried out. 16. Current liabilities - ANSWER are satisfied within a year of the balance sheet date 17. 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 18. Exemption requirements for nongovernmental not-for-profit healthcare: - ANSWER No inures to private shareholder, no influencing legislation, no political campaign 19. IRS form 990 - Return of Organization Exempt from Income Tax - ANSWER form for income tax under IRS section 501(a) and for non exempt charitable trusts 20. Most healthcare organizations are dependent - ANSWER on financing long-term debt 21. Advance refunding enables providers: - ANSWER to restructure their long-term liabilities, reduce interest rates, or terminate restrictive bond covenants 22. Revenue usually is recorded when: - ANSWER an enrollee or the service is provided to a patient or resident. 23. Donations of noncash assets that are not long-lived assets are recognized as revenue - ANSWER in the period received. 24. Donations received with no restrictions attached are reported as unrestricted support in - ANSWER the statement of activities. 25. Donor-restricted contributions may be reported as unrestricted support if - ANSWER the organization reports consistently from period to period and discloses its accounting policy 26. Donations of long-lived assets are reported as revenue in - ANSWER the period received at fair value. (long-lived) 27. Donations of Cash used to acquire long-lived assets are reported as - ANSWER temporary restricted support in the period received. 28. The equity method should be used when investment in voting stock gives - ANSWER an investor the ability to exercise significant influence over operating and financial policies of an investee. (method) 29. Reporting and disclosure requirements of nongovernmental healthcare organizations: - ANSWER Majority of a for-profit voting stock (consolidated statements), sole corporate member of a not-for-profit entity (consolidated statements), entity controls another entity through a majority voting interest (consolidated statements), 50% or less common voting stock (Equity Method FASB ASC 323-10) 30. Financial Statements consist of: - ANSWER Balance Sheet, Statement of Operations, Statement of Changes in Net Assets, Statement of Cash Flows, Notes of the Financial Statement 31. Charity Care - ANSWER Inability to pay 32. Bad Debt - ANSWER Unwillingness to pay 33. HHS defines income: - ANSWER Wages, Self-Employment, Social Security, Unemployment compensation, Worker's compensation, Veteran's payments, public assistance, alimony and child support 34. Income does not include: - ANSWER Capital gains, assets drawn down as withdrawals from a bank, sale of property house or car, refunds gifts loans lump-sum inheritances, one-time insurance payments, or compensation for injury 35. Realizable amounts determined by: - ANSWER Contractual agreement, legislation (worker's comp), provider policy updates 36. Prospective rate setting is used to set payment rates in advance of - ANSWER delivery of healthcare services, determine amount third parties will pay during the rate year. 37. Retrospective rates setting determines - ANSWER an interim rate and then a final settlement is made after the rate year. 38. First functions of CMS: - ANSWER Eligibility policy, reimbursement, provider and program administration 39. Second function of CMS: - ANSWER Conditions under CMS programs, performance standards in administration, and results to achieve 40. Third function of CMS: - ANSWER Monitoring performance of contractors 41. Major agencies with regulatory authority: - ANSWER Centers for Medicare and Medicaid Services (CMS), Provider Reimbursement Review Board (PRRB), Federal Trade Commission (FTC), Internal Revenue Service (IRS), Quality Improvement Organization (QIO), Joint Commission, Office of the Inspector General (OIG), United States Department of Justice (DOJ), U.S. Public Health Service 42. Medicare was established - ANSWER by the Social Security Act of 1965, enacted on July 1, 1966 43. Medicare provides health insurance benefits to: - ANSWER 65 or older, renal (kidney) failure, certain disabilities 44. Medicaid is administered by - ANSWER Jointly the federal and state governments. 45. Medicaid began - ANSWER January of 1967, 46. For Medicaid, states receive funding from the federal government based on - ANSWER the state's per capita income. 47. First Medicare Cost Reimbursement Phase - ANSWER Determining Allowable Costs 48. Second Medicare Cost Reimbursement Phase - ANSWER Cost Finding 49. Third Medicare Cost Reimbursement Phase - ANSWER Cost Apportionment 50. Fourth Medicare Cost Reimbursement Phase - ANSWER Determining Settlement