HFMA CSAF EXAM 2 EXAM SCRIPT 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Buildings and improvements Answer: **Yes
No
◉ With the Prospective Payment System, hospital reimbursement
for inpatients, with the exception of critical access hospitals, is
determined prospectively. Answer: **A. Medicare
B. Medicaid
◉ Register public accounting firms. Answer: **Yes
No
◉ Determining allowable costs Answer: Yes
**No
◉ What is the primary purpose of measuring productivity? Answer:
**A. For management to determine if resources are being used
efficiently.
B. For management to implement a separate labor productivity
monitoring process.
,C. For management to identify areas where corrective action may be
appropriate.
D. For management to incorporate strategic and operating plans for
an organization
◉ Equipment and lease renewal options are determined by the fair
market value of the equipment. Answer: A. Capital Lease
**B. Operating Lease
◉ Claims would be covered in the period they were identified and
reported Answer: A. Occurrence basis
**B. Claims-made basis
◉ Which use of ratio analysis will help an organization decide how
much of a debt burden it can feasibly assume? Answer: NOT- A.
Assess short-and long-range financial plans
B. Assessing debt capacity
C. Monitoring debt covenant compliance
D. Pricing of services
◉ Revenue is reported on the accrual basis matching the period in
which the care is provided to the patient. Answer: **A. Patient
Service Revenues
B. Premium Revenues
,◉ Charitable Donations Answer: Yes
**No
◉ States receive funding from the federal government based on the
state's per capita income Answer: A. Medicare
**B. Medicaid
◉ Should report their total income or loss from operations on a
statement of revenues and expenses. In many instances the
statement also includes the change in net position. Answer: A. Not-
for-profit organizations
B. Governmental organizations
C. Expenses
NOT - D. Healthcare organizations
◉ Externally designated for expenditure in the acquisition or
construction of noncurrent assets Answer: **Yes
No
◉ The cost of extending the lease for the entire useful life of the
equipment may be more than the actual purchase price. Answer: A.
Advantage
**B. Disadvantage
, ◉ De minimis fringe benefits Answer: Yes
**No
◉ The amount of cash required to plan and implement an
investment proposal. Answer: A. Cash Outflow
B. Cash Inflow
C. Economic Life
NOT - D. Opportunity Cost of Funds
◉ Opportunities passed by because they were identified as too risky.
Answer: **A. Cost
B. Benefit
◉ The value lost from those incidents that could not be prevented.
Answer: **A. Cost
B. Benefit
◉ To assert to and report on the effectiveness of the company's
internal controls and procedures for financial reporting on an
annual basis. Answer: Yes
**No
QUESTIONS WITH ANSWERS GRADED A+
◉ Buildings and improvements Answer: **Yes
No
◉ With the Prospective Payment System, hospital reimbursement
for inpatients, with the exception of critical access hospitals, is
determined prospectively. Answer: **A. Medicare
B. Medicaid
◉ Register public accounting firms. Answer: **Yes
No
◉ Determining allowable costs Answer: Yes
**No
◉ What is the primary purpose of measuring productivity? Answer:
**A. For management to determine if resources are being used
efficiently.
B. For management to implement a separate labor productivity
monitoring process.
,C. For management to identify areas where corrective action may be
appropriate.
D. For management to incorporate strategic and operating plans for
an organization
◉ Equipment and lease renewal options are determined by the fair
market value of the equipment. Answer: A. Capital Lease
**B. Operating Lease
◉ Claims would be covered in the period they were identified and
reported Answer: A. Occurrence basis
**B. Claims-made basis
◉ Which use of ratio analysis will help an organization decide how
much of a debt burden it can feasibly assume? Answer: NOT- A.
Assess short-and long-range financial plans
B. Assessing debt capacity
C. Monitoring debt covenant compliance
D. Pricing of services
◉ Revenue is reported on the accrual basis matching the period in
which the care is provided to the patient. Answer: **A. Patient
Service Revenues
B. Premium Revenues
,◉ Charitable Donations Answer: Yes
**No
◉ States receive funding from the federal government based on the
state's per capita income Answer: A. Medicare
**B. Medicaid
◉ Should report their total income or loss from operations on a
statement of revenues and expenses. In many instances the
statement also includes the change in net position. Answer: A. Not-
for-profit organizations
B. Governmental organizations
C. Expenses
NOT - D. Healthcare organizations
◉ Externally designated for expenditure in the acquisition or
construction of noncurrent assets Answer: **Yes
No
◉ The cost of extending the lease for the entire useful life of the
equipment may be more than the actual purchase price. Answer: A.
Advantage
**B. Disadvantage
, ◉ De minimis fringe benefits Answer: Yes
**No
◉ The amount of cash required to plan and implement an
investment proposal. Answer: A. Cash Outflow
B. Cash Inflow
C. Economic Life
NOT - D. Opportunity Cost of Funds
◉ Opportunities passed by because they were identified as too risky.
Answer: **A. Cost
B. Benefit
◉ The value lost from those incidents that could not be prevented.
Answer: **A. Cost
B. Benefit
◉ To assert to and report on the effectiveness of the company's
internal controls and procedures for financial reporting on an
annual basis. Answer: Yes
**No
