HFMA'S CSAF ACTUAL EXAM
BANK 300+ QUESTIONS
AND CORRECT ANSWERS
2026-2027
LATEST STUDY GUIDE .
,1. Contribution Margin✔✔ CORRECT ANSWER Ditterence between marginal revenue and marginal cost.
2. Break-even point✔✔ CORRECT ANSWER Level of sales volume of a product producing the exact amount of contribution margin needed to cover fixed
costs.
3. Overhead✔✔ CORRECT ANSWER Indirect Costs
4. Activity-based costing (ABC)✔✔ CORRECT 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.✔✔ CORRECT ANSWER Predetermined (Synthetic), Negotiated (Historical), and Customized
(Engineered)
6. Four Types of Individual Cost behaviors✔✔ CORRECT ANSWER Variable, Fixed Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped
Variable
7. Three Principal Types of expense variances✔✔ CORRECT ANSWER Price, Volume, and Eflciency
8. The 4 Primary payment methods used in managed care✔✔ CORRECT ANSWER Fee-for-Service, Per Diem Rate, Case Rate,
Capitation
9. Healthcare providers should develop different modeling tools depending on✔✔ CORRECT ANSWER the
reimbursement method proposed in the contract
10. The general categories of provider excess loss insurance are✔✔ CORRECT ANSWER per-person, aggregate, and carve-out.
11. A Strategic Plan allows organizations to✔✔ CORRECT ANSWER have a clear plan as to why they are in business and how they can stay
in business in the future.
12. The main types of control budgets include✔✔ CORRECT ANSWER operating, capital, and cash.
13. A budgeting process develops assumptions for the following✔✔ CORRECT ANSWER ✔✔ CORRECT
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
14. Operating budget's statistical factors include✔✔ CORRECT ANSWER Historical statistics, Historical relationship of department
volume, anticipated ettects of new programs, clinical practice patters, covered lives in global payment risk programs, changes in regulatory environment, technical developments,
process improvements, marketing ettorts, demographic trends
15. The primary purpose of measuring productivity is✔✔ CORRECT ANSWER for management to determine if resources are
being used eflciently
16. Budget types include✔✔ CORRECT ANSWER fixed and flexible
17. The four budget variances used to explain by cause are✔✔ CORRECT ANSWER Volume, rate (charged), price (of a supply), and
eflciency (cost per procedure).
,18. Three common Capital Evaluation techniques✔✔ CORRECT ANSWER Payback, Net Present Value Method, Return on Investment
19. Users of ratio analysis✔✔ CORRECT ANSWER Board of Directors, Management, Health Systems Agencies, Creditors, Employee Unions, Rate
Regulators
20. The categories of ratios used✔✔ CORRECT ANSWER Profitability Ratios, Liquidity Ratios, Activity Ratios, Capital Structure Ratios
21. Two common types of long-term debt✔✔ CORRECT ANSWER Revenue bonds and General Obligation Bonds
22. Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons✔✔ CORRECT ANSWER Take
advantage of lower interest rates, change collateral restrictions, allow acquisition of other assets, better fit debt service requriements
23. Healthcare bond issues place legal obligations on✔✔ CORRECT ANSWER the borrower intended to protect the lender against
default by the borrower.
24. In order to use the discounted cash flow method✔✔ CORRECT ANSWER you need to know the payment flow or payment pattern
and the interest rate
25. Every capital investment proposal requires 4 quantifiable factors✔✔ CORRECT ANSWER Cash Outflow, Cash
Inflow, Economic Life, Opportunity Cost of funds
26. Three significant Investment valuation methods✔✔ CORRECT ANSWER Discounted cash flow method, Replace- ment cost
method, Market comparison
27. Two types of equity financing✔✔ CORRECT ANSWER Internal and External
28. In a capital lease, all of the benefits and risks of owner except title or ending (salvage value)✔✔ CORRECT ANSWER
get transferred to the lessee. The lessor recovers full price and interest during the lease.
29. An operating lease is✔✔ CORRECT ANSWER when the hospital is liable for the leasing cost; renewal options are determined by the fair market value
30. Advantages of leasing✔✔ CORRECT ANSWER working capital is conserved, budgetary control, tax benefits may be realized, project may be financed
100%, lessee has greater flexibility in replacing equipment
31. Disadvantages of leasing✔✔ CORRECT 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
32. When issuing a rating on a specific organization, a rating agency will com- monly consider the following✔✔ CORRECT
ANSWER Provisions or structure of the financing, competitive environment and market position, medical statt characteristics, management capability, financial
, 33. Methods of a Cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Cash receipts and disbursements Method, Adjusted Net Income
Method, Working Capital Ditterential Method
34. Primary purposes of a cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Identify cash requirements and sources for a certain
period of time, control the flow of cash funds
35. Healthcare organizations use commercial banking services for✔✔ CORRECT ANSWER ✔✔ CORRECT
ANSWER Controlled Dis- bursement Account, Depository Account, Concentration Account and Zero Balance Account, Sweep Account
36. The components incorporated in a cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT 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
37. An investment policy✔✔ CORRECT ANSWER Establishes a framework to make investment decisions and evaluate results
38. The returns, risks, and correlation are the primary inputs for✔✔ CORRECT ANSWER assetallocationmodels
39. Different types of asset allocation risks are as follows✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER maturity
(liquidity) risk, interest rate risk, credit risk, political (legal) risk, market (price) risk
40. Three Internal control objectives✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Ettectiveness and eflciency of operations, Reliability
of financial reporting (external and internal), compliance with applicable laws and regulations
41. Sarbanes-Oxley established✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Enhanced standards for accountability and penalties for
wrongdoing.
42. Sarbanes-Oxley makes it so that CEOs and CFOs are responsible for✔✔ CORRECT ANSWER ✔✔ CORRECT
ANSWER Disclosure controls, ensuring specified information (controls) is made known to them, regular evaluations of controls with quarterly certifications
43. PCAOB does✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Register public accounting firms, establish audit standards, inspect accounting firms,
discipli- nary proceedings and appropriate sanctions, PCAOB budget.
44. Components of auditor's attestation report✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Objective, Date,
Evaluation
45. Operational auditing is one technique available to✔✔ CORRECT ANSWER management to ensure objectives and organizational
policies are ettectively carried out.
46. Current liabilities✔✔ CORRECT ANSWER are satisfied within a year of the balance sheet date
47. Examples of current liabilities✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Notes payable to banks, current portions of long-term debt,
BANK 300+ QUESTIONS
AND CORRECT ANSWERS
2026-2027
LATEST STUDY GUIDE .
,1. Contribution Margin✔✔ CORRECT ANSWER Ditterence between marginal revenue and marginal cost.
2. Break-even point✔✔ CORRECT ANSWER Level of sales volume of a product producing the exact amount of contribution margin needed to cover fixed
costs.
3. Overhead✔✔ CORRECT ANSWER Indirect Costs
4. Activity-based costing (ABC)✔✔ CORRECT 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.✔✔ CORRECT ANSWER Predetermined (Synthetic), Negotiated (Historical), and Customized
(Engineered)
6. Four Types of Individual Cost behaviors✔✔ CORRECT ANSWER Variable, Fixed Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped
Variable
7. Three Principal Types of expense variances✔✔ CORRECT ANSWER Price, Volume, and Eflciency
8. The 4 Primary payment methods used in managed care✔✔ CORRECT ANSWER Fee-for-Service, Per Diem Rate, Case Rate,
Capitation
9. Healthcare providers should develop different modeling tools depending on✔✔ CORRECT ANSWER the
reimbursement method proposed in the contract
10. The general categories of provider excess loss insurance are✔✔ CORRECT ANSWER per-person, aggregate, and carve-out.
11. A Strategic Plan allows organizations to✔✔ CORRECT ANSWER have a clear plan as to why they are in business and how they can stay
in business in the future.
12. The main types of control budgets include✔✔ CORRECT ANSWER operating, capital, and cash.
13. A budgeting process develops assumptions for the following✔✔ CORRECT ANSWER ✔✔ CORRECT
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
14. Operating budget's statistical factors include✔✔ CORRECT ANSWER Historical statistics, Historical relationship of department
volume, anticipated ettects of new programs, clinical practice patters, covered lives in global payment risk programs, changes in regulatory environment, technical developments,
process improvements, marketing ettorts, demographic trends
15. The primary purpose of measuring productivity is✔✔ CORRECT ANSWER for management to determine if resources are
being used eflciently
16. Budget types include✔✔ CORRECT ANSWER fixed and flexible
17. The four budget variances used to explain by cause are✔✔ CORRECT ANSWER Volume, rate (charged), price (of a supply), and
eflciency (cost per procedure).
,18. Three common Capital Evaluation techniques✔✔ CORRECT ANSWER Payback, Net Present Value Method, Return on Investment
19. Users of ratio analysis✔✔ CORRECT ANSWER Board of Directors, Management, Health Systems Agencies, Creditors, Employee Unions, Rate
Regulators
20. The categories of ratios used✔✔ CORRECT ANSWER Profitability Ratios, Liquidity Ratios, Activity Ratios, Capital Structure Ratios
21. Two common types of long-term debt✔✔ CORRECT ANSWER Revenue bonds and General Obligation Bonds
22. Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons✔✔ CORRECT ANSWER Take
advantage of lower interest rates, change collateral restrictions, allow acquisition of other assets, better fit debt service requriements
23. Healthcare bond issues place legal obligations on✔✔ CORRECT ANSWER the borrower intended to protect the lender against
default by the borrower.
24. In order to use the discounted cash flow method✔✔ CORRECT ANSWER you need to know the payment flow or payment pattern
and the interest rate
25. Every capital investment proposal requires 4 quantifiable factors✔✔ CORRECT ANSWER Cash Outflow, Cash
Inflow, Economic Life, Opportunity Cost of funds
26. Three significant Investment valuation methods✔✔ CORRECT ANSWER Discounted cash flow method, Replace- ment cost
method, Market comparison
27. Two types of equity financing✔✔ CORRECT ANSWER Internal and External
28. In a capital lease, all of the benefits and risks of owner except title or ending (salvage value)✔✔ CORRECT ANSWER
get transferred to the lessee. The lessor recovers full price and interest during the lease.
29. An operating lease is✔✔ CORRECT ANSWER when the hospital is liable for the leasing cost; renewal options are determined by the fair market value
30. Advantages of leasing✔✔ CORRECT ANSWER working capital is conserved, budgetary control, tax benefits may be realized, project may be financed
100%, lessee has greater flexibility in replacing equipment
31. Disadvantages of leasing✔✔ CORRECT 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
32. When issuing a rating on a specific organization, a rating agency will com- monly consider the following✔✔ CORRECT
ANSWER Provisions or structure of the financing, competitive environment and market position, medical statt characteristics, management capability, financial
, 33. Methods of a Cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Cash receipts and disbursements Method, Adjusted Net Income
Method, Working Capital Ditterential Method
34. Primary purposes of a cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Identify cash requirements and sources for a certain
period of time, control the flow of cash funds
35. Healthcare organizations use commercial banking services for✔✔ CORRECT ANSWER ✔✔ CORRECT
ANSWER Controlled Dis- bursement Account, Depository Account, Concentration Account and Zero Balance Account, Sweep Account
36. The components incorporated in a cash budget✔✔ CORRECT ANSWER ✔✔ CORRECT 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
37. An investment policy✔✔ CORRECT ANSWER Establishes a framework to make investment decisions and evaluate results
38. The returns, risks, and correlation are the primary inputs for✔✔ CORRECT ANSWER assetallocationmodels
39. Different types of asset allocation risks are as follows✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER maturity
(liquidity) risk, interest rate risk, credit risk, political (legal) risk, market (price) risk
40. Three Internal control objectives✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Ettectiveness and eflciency of operations, Reliability
of financial reporting (external and internal), compliance with applicable laws and regulations
41. Sarbanes-Oxley established✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Enhanced standards for accountability and penalties for
wrongdoing.
42. Sarbanes-Oxley makes it so that CEOs and CFOs are responsible for✔✔ CORRECT ANSWER ✔✔ CORRECT
ANSWER Disclosure controls, ensuring specified information (controls) is made known to them, regular evaluations of controls with quarterly certifications
43. PCAOB does✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Register public accounting firms, establish audit standards, inspect accounting firms,
discipli- nary proceedings and appropriate sanctions, PCAOB budget.
44. Components of auditor's attestation report✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Objective, Date,
Evaluation
45. Operational auditing is one technique available to✔✔ CORRECT ANSWER management to ensure objectives and organizational
policies are ettectively carried out.
46. Current liabilities✔✔ CORRECT ANSWER are satisfied within a year of the balance sheet date
47. Examples of current liabilities✔✔ CORRECT ANSWER ✔✔ CORRECT ANSWER Notes payable to banks, current portions of long-term debt,
