HFMA CSAF EXAM 2 FINAL PAPER 2026
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ All incidents occurring within the insured period would be
covered regardless of when they were identified or reported.
Answer: **A. Occurrence basis
B. Claims-made basis
◉ The output of this phase is the provider's cost reimbursable from
Medicare. Answer: A. Phase I
B. Phase II
**C. Phase III
D. Phase IV
◉ What is prospective rate setting? Answer: **A. A method used to
set payment rates in advance of the delivery of healthcare services
B. An interim payment determination from a third party
C. Promises to give with payments due in future periods
D. The disclosure of information about significant concentrations of
credit risk from third parties
,◉ Notes of the Financial Statement Answer: **Yes
No
◉ Refusing to receive solicitations or kickbacks. Answer: Yes
**No
◉ Statement of Operations Answer: **Yes
No
◉ Statement of Changes in Net Assets Answer: **Yes
No
◉ Reporting Entities Answer: Yes
**No
◉ Unemployment compensation. Answer: **True
False
◉ Regarding the reporting and disclosure requirements of
nongovernmental healthcare organizations, which of the following
options do NOT require consolidation? Answer: NOT - A. The entity
owns a majority of a for-profit entity's voting stock.
,B. The entity is the sole corporate member of a not-for-profit entity.
C. The reporting entity owns 50 percent or less of the common
voting stock of an investee and can exercise significant influence
over operating and financial policies.
D. The entity controls another through a majority voting interest in
the board and an economic interest exists.
◉ Construction in progress Answer: **Yes
No
◉ Notes Answer: **Yes
No
◉ What is the purpose of the Audit Guide? Answer: **A. Identifies
various methods for quantifying and valuing uncompensated care,
such as gross charges, actual costs, and units of service
B. Disqualifies charity care for recognition as receivables or revenue
in the financial statements
C. Identifies a single method for quantifying and valuing
uncompensated care, such as gross charges, actual costs, and units
of service
D. To declare that charity care represents healthcare services that
are provided but are never expected to result in cash flows
, ◉ Any trade or business that consists of selling merchandise,
substantially all of which has been received by the organization as
gifts or contributions. Answer: A. UBI condition
**B. UBI excluded activity
◉ Which statistical factor is typically used by healthcare
organizations in their operating budgets? Answer: A. Historical
statistics
B. Technological developments
C. Labor contracts and union activities
NOT - D. Cash flow budgets
◉ The entity does not participate in, or intervene in, any political
campaign on behalf of any candidate for public office. Answer: **Yes
No
◉ All of the benefits and risks of ownership have been effectively
transferred to the lessee, except the lessee doesn't get title to the
asset or any value at the end of the lease. Answer: **A. Capital Lease
B. Operating Lease
◉ Who uses ratio analysis in its purest form for evaluating debt
offerings or applications for borrowing money? Answer: A.
Employee unions
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ All incidents occurring within the insured period would be
covered regardless of when they were identified or reported.
Answer: **A. Occurrence basis
B. Claims-made basis
◉ The output of this phase is the provider's cost reimbursable from
Medicare. Answer: A. Phase I
B. Phase II
**C. Phase III
D. Phase IV
◉ What is prospective rate setting? Answer: **A. A method used to
set payment rates in advance of the delivery of healthcare services
B. An interim payment determination from a third party
C. Promises to give with payments due in future periods
D. The disclosure of information about significant concentrations of
credit risk from third parties
,◉ Notes of the Financial Statement Answer: **Yes
No
◉ Refusing to receive solicitations or kickbacks. Answer: Yes
**No
◉ Statement of Operations Answer: **Yes
No
◉ Statement of Changes in Net Assets Answer: **Yes
No
◉ Reporting Entities Answer: Yes
**No
◉ Unemployment compensation. Answer: **True
False
◉ Regarding the reporting and disclosure requirements of
nongovernmental healthcare organizations, which of the following
options do NOT require consolidation? Answer: NOT - A. The entity
owns a majority of a for-profit entity's voting stock.
,B. The entity is the sole corporate member of a not-for-profit entity.
C. The reporting entity owns 50 percent or less of the common
voting stock of an investee and can exercise significant influence
over operating and financial policies.
D. The entity controls another through a majority voting interest in
the board and an economic interest exists.
◉ Construction in progress Answer: **Yes
No
◉ Notes Answer: **Yes
No
◉ What is the purpose of the Audit Guide? Answer: **A. Identifies
various methods for quantifying and valuing uncompensated care,
such as gross charges, actual costs, and units of service
B. Disqualifies charity care for recognition as receivables or revenue
in the financial statements
C. Identifies a single method for quantifying and valuing
uncompensated care, such as gross charges, actual costs, and units
of service
D. To declare that charity care represents healthcare services that
are provided but are never expected to result in cash flows
, ◉ Any trade or business that consists of selling merchandise,
substantially all of which has been received by the organization as
gifts or contributions. Answer: A. UBI condition
**B. UBI excluded activity
◉ Which statistical factor is typically used by healthcare
organizations in their operating budgets? Answer: A. Historical
statistics
B. Technological developments
C. Labor contracts and union activities
NOT - D. Cash flow budgets
◉ The entity does not participate in, or intervene in, any political
campaign on behalf of any candidate for public office. Answer: **Yes
No
◉ All of the benefits and risks of ownership have been effectively
transferred to the lessee, except the lessee doesn't get title to the
asset or any value at the end of the lease. Answer: **A. Capital Lease
B. Operating Lease
◉ Who uses ratio analysis in its purest form for evaluating debt
offerings or applications for borrowing money? Answer: A.
Employee unions
