D515 HEALTHCARE FINANCIAL MANAGEMENT
PRACTICE EXAM STUDY GUIDE UPDATED
2026/2027 | VERIFIED QUESTIONS AND ANSWERS
| WGU D515 EXAM PREP | HIGH YIELD FINANCE
REVIEW
• This verified practice exam contains 200 high-yield questions aligned to the WGU
D515 Healthcare Financial Management exam blueprint, covering every major
domain tested.
• Use this guide by attempting each question independently before checking the
highlighted correct answer and EXPERT RATIONALE to reinforce conceptual
understanding and exam readiness.
QUESTION 1
Which financial statement reports a healthcare organization's financial
position at a specific point in time?
A. Income Statement
B. Statement of Cash Flows
C. Statement of Changes in Equity
D. Statement of Retained Earnings
E. Balance Sheet
CORRECT ANSWER: E. Balance Sheet
EXPERT RATIONALE: The Balance Sheet (also called the Statement of Financial
Position) reports assets, liabilities, and equity at a specific point in time, giving a
snapshot of what the organization owns and owes.
QUESTION 2
Which of the following best describes the accrual basis of accounting?
A. Revenue is recorded only when cash is received
,B. Expenses are recorded only when cash is paid
C. Revenue and expenses are recorded when earned or incurred regardless of cash
flow
D. Revenue is recorded when a bill is sent to the payer
E. Expenses are recorded when approved by management
CORRECT ANSWER: C. Revenue and expenses are recorded when earned or
incurred regardless of cash flow
EXPERT RATIONALE: Accrual accounting matches revenues to the period they are
earned and expenses to the period they are incurred, regardless of when cash
actually changes hands.
QUESTION 3
What is the primary purpose of the operating budget in a healthcare
organization?
A. To plan for long-term capital investments
B. To project cash inflows and outflows over a fiscal year
C. To estimate revenues and expenses for day-to-day operations
D. To allocate funds for research and development
E. To track depreciation of fixed assets
CORRECT ANSWER: C. To estimate revenues and expenses for day-to-day
operations
EXPERT RATIONALE: The operating budget focuses on the routine revenues and
expenses associated with delivering healthcare services during a budget period,
typically one year.
QUESTION 4
,Days Cash on Hand measures:
A. The number of days until accounts receivable are collected
B. How many days an organization can cover expenses using available cash
C. The average number of days to pay vendors
D. The ratio of cash to total assets
E. The number of days revenue exceeds expenses
CORRECT ANSWER: B. How many days an organization can cover expenses
using available cash
EXPERT RATIONALE: Days Cash on Hand = (Cash + Short-term Investments) /
(Operating Expenses − Depreciation / 365). It indicates liquidity and financial
resilience.
QUESTION 5
Which of the following is an example of a variable cost in a hospital?
A. Building lease payments
B. Administrative salaries
C. Medical supplies used per patient
D. Depreciation on equipment
E. Insurance premiums
CORRECT ANSWER: C. Medical supplies used per patient
EXPERT RATIONALE: Variable costs change in direct proportion to volume. Medical
supplies increase as more patients are treated, making them a classic variable cost.
QUESTION 6
What does the Current Ratio measure?
, A. Profitability relative to total assets
B. Ability to meet long-term obligations
C. Ability to meet short-term obligations using current assets
D. Efficiency of revenue collection
E. Return on equity for shareholders
CORRECT ANSWER: C. Ability to meet short-term obligations using current
assets
EXPERT RATIONALE: Current Ratio = Current Assets / Current Liabilities. A ratio
above 1.0 indicates the organization has more short-term assets than short-term
liabilities.
QUESTION 7
Which reimbursement model pays a fixed amount per patient per month
regardless of services used?
A. Fee-for-service
B. Prospective payment
C. Capitation
D. Per diem
E. Cost-plus reimbursement
CORRECT ANSWER: C. Capitation
EXPERT RATIONALE: Under capitation, a provider receives a set monthly payment
per enrolled member. This shifts financial risk to the provider and incentivizes
preventive care.
QUESTION 8
PRACTICE EXAM STUDY GUIDE UPDATED
2026/2027 | VERIFIED QUESTIONS AND ANSWERS
| WGU D515 EXAM PREP | HIGH YIELD FINANCE
REVIEW
• This verified practice exam contains 200 high-yield questions aligned to the WGU
D515 Healthcare Financial Management exam blueprint, covering every major
domain tested.
• Use this guide by attempting each question independently before checking the
highlighted correct answer and EXPERT RATIONALE to reinforce conceptual
understanding and exam readiness.
QUESTION 1
Which financial statement reports a healthcare organization's financial
position at a specific point in time?
A. Income Statement
B. Statement of Cash Flows
C. Statement of Changes in Equity
D. Statement of Retained Earnings
E. Balance Sheet
CORRECT ANSWER: E. Balance Sheet
EXPERT RATIONALE: The Balance Sheet (also called the Statement of Financial
Position) reports assets, liabilities, and equity at a specific point in time, giving a
snapshot of what the organization owns and owes.
QUESTION 2
Which of the following best describes the accrual basis of accounting?
A. Revenue is recorded only when cash is received
,B. Expenses are recorded only when cash is paid
C. Revenue and expenses are recorded when earned or incurred regardless of cash
flow
D. Revenue is recorded when a bill is sent to the payer
E. Expenses are recorded when approved by management
CORRECT ANSWER: C. Revenue and expenses are recorded when earned or
incurred regardless of cash flow
EXPERT RATIONALE: Accrual accounting matches revenues to the period they are
earned and expenses to the period they are incurred, regardless of when cash
actually changes hands.
QUESTION 3
What is the primary purpose of the operating budget in a healthcare
organization?
A. To plan for long-term capital investments
B. To project cash inflows and outflows over a fiscal year
C. To estimate revenues and expenses for day-to-day operations
D. To allocate funds for research and development
E. To track depreciation of fixed assets
CORRECT ANSWER: C. To estimate revenues and expenses for day-to-day
operations
EXPERT RATIONALE: The operating budget focuses on the routine revenues and
expenses associated with delivering healthcare services during a budget period,
typically one year.
QUESTION 4
,Days Cash on Hand measures:
A. The number of days until accounts receivable are collected
B. How many days an organization can cover expenses using available cash
C. The average number of days to pay vendors
D. The ratio of cash to total assets
E. The number of days revenue exceeds expenses
CORRECT ANSWER: B. How many days an organization can cover expenses
using available cash
EXPERT RATIONALE: Days Cash on Hand = (Cash + Short-term Investments) /
(Operating Expenses − Depreciation / 365). It indicates liquidity and financial
resilience.
QUESTION 5
Which of the following is an example of a variable cost in a hospital?
A. Building lease payments
B. Administrative salaries
C. Medical supplies used per patient
D. Depreciation on equipment
E. Insurance premiums
CORRECT ANSWER: C. Medical supplies used per patient
EXPERT RATIONALE: Variable costs change in direct proportion to volume. Medical
supplies increase as more patients are treated, making them a classic variable cost.
QUESTION 6
What does the Current Ratio measure?
, A. Profitability relative to total assets
B. Ability to meet long-term obligations
C. Ability to meet short-term obligations using current assets
D. Efficiency of revenue collection
E. Return on equity for shareholders
CORRECT ANSWER: C. Ability to meet short-term obligations using current
assets
EXPERT RATIONALE: Current Ratio = Current Assets / Current Liabilities. A ratio
above 1.0 indicates the organization has more short-term assets than short-term
liabilities.
QUESTION 7
Which reimbursement model pays a fixed amount per patient per month
regardless of services used?
A. Fee-for-service
B. Prospective payment
C. Capitation
D. Per diem
E. Cost-plus reimbursement
CORRECT ANSWER: C. Capitation
EXPERT RATIONALE: Under capitation, a provider receives a set monthly payment
per enrolled member. This shifts financial risk to the provider and incentivizes
preventive care.
QUESTION 8
