CPPM Exam Prep AAPC Practice Management Final
Exam 2026 Exam Questions LATEST VERSIONS 155
QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
A hospital provides free office space to providers who admit patients for inpatient procedures.
Which law(s) does this violate? - CORRECT ANSWER: B. Anti-Kickback Law
A patient is very upset because her insurance denied her claim. She was seen for a routine
physical which is not covered by her insurance. The patient asks you to change the diagnosis
code in order for the insurance company to pay the claim. Which of the following should be
done?
A. Explain to the patient the codes are correct and you cannot change the diagnosis unless you
have her consent in writing.
B. Have the provider or coder review the encounter to see if another diagnosis is appropriate
before making any changes to the codes.
C. Change the diagnosis so that the insurance company will pay the claim because a service was
rendered and should be paid.
D. Submit an appeal for the insurance company to reconsider the claim and include a copy of the
medical record for the date of service in question. - CORRECT ANSWER: B. Have the provider
or coder review the encounter to see if another diagnosis is appropriate before making any
changes to the codes.
Advances in technology in the medical practice have increased efficiencies in many areas. Which
of the following is LEAST impacted in increasing efficiencies?
A. Patient response to care
B. Real-time claim adjudication
C. Electronic payment posting
D. Claim editing prior to submission - CORRECT ANSWER: A. Patient response to care
,As a manager you are preparing to apply for a large bank loan. In so doing, you will need to
represent to the bank the overall financial strength of your business including money coming in,
money owed to you, and money that you owe to other people. Which financial statement is best
used to represent the current status of your practice in this regard? - CORRECT ANSWER: The
balance sheet is a snapshot of a business' financial condition at a specific point in time. It
includes values for assets, liabilities, and stockholders' equity.
As a manager, you are considering whether to purchase a new diagnostic device. The price of the
device is $20,000 which will be paid in equal payments over 4 years. The average revenue you
can expect per test is $40. The cost of supplies for each test is $5. Not accounting for staff costs,
how many tests would need to be performed each year to break even? - CORRECT ANSWER:
This is found by dividing the yearly cost of the equipment (20,000/4= 5,000) by the profit from
each test performed (40-5=35). The result is 5, = 142.9. Therefore, 143 tests would need
to be performed to cover the cost of the equipment and break even.
As the practice manager, it is your responsibility to minimize risk. To accomplish this, you
perform a risk analysis. During the analysis you find that the refrigerator where medications are
stored is not cooling to the appropriate temperature. Which of the following is NOT a step in
performing a risk analysis?
A. Determine the likelihood the risk will cause an adverse effect.
B. Quickly resolve all risks identified.
C. Determine the financial impact if the risk is not resolved.
D. Determine the level of risk to the practice. - CORRECT ANSWER: B. Quickly resolve all
risks identified.
Based on the following productivity dashboard, what valuable information can be derived to use
in a conversation with a physician who is upset about decreasing compensation?
I. The reason compensation is decreasing is because production levels are below MGMA mean
production levels
II. The provider's productivity was on track with expectations during the first part of the year but
has fallen behind in the latter part of the year.
, III. Overall the average production of the provider should still support current compensation
levels
IV. The manager can review trends of the providers practice to identify why there were
unexpected drops in production in May - CORRECT ANSWER: C. II is correct
Calculate the days in A/R based on the following numbers over a 2 month (60 day) period of
time. Total charges = $932,000A/R balance = $616,000Average charge=$225 - CORRECT
ANSWER: To determine the total days in A/R the equation is Total A/R/(Total charges/# of
days). For this example:$616,000$932,000/60
Answer is 40
Determine the physician's compensation for the first quarter using the percentage of net
professional revenue model with the information provided below at a 50 percent compensation
percentage. - CORRECT ANSWER: B. $46,931
During a specific month, your practice appears to have consistent productivity and charges
submitted. Expenses also appear to be in line and consistent. However, you notice your accounts
receivable has increased dramatically over the month. Based on this information, which of the
following statements would be accurate?
I. The income on a cash-based income statement should decrease
II. The income on an accrual-based income statement would decreaseIII. There should not be a
significant difference in beginning and ending cash amounts on your cash flow statement
IV. The equity on your balance sheet should remain fairly constant
V. The amount of assets on your balance sheet will grow higher than will your liabilities and
equity. - CORRECT ANSWER: If accounts receivable spike during a month, that means fewer
payments have been received, which will decrease collections and the income on the income
statement. Decreased collections will also negatively impact your cash flow statement which
monitors cash levels in your practice. Because accrual based accounting measures income based
on charges, it would not be affected. Equity on your balance sheet is not directly affected by a
change in cash flow as assets include both cash and accounts receivable. Finally, assets must
always equal liabilities and equity on a balance sheet.
Exam 2026 Exam Questions LATEST VERSIONS 155
QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
A hospital provides free office space to providers who admit patients for inpatient procedures.
Which law(s) does this violate? - CORRECT ANSWER: B. Anti-Kickback Law
A patient is very upset because her insurance denied her claim. She was seen for a routine
physical which is not covered by her insurance. The patient asks you to change the diagnosis
code in order for the insurance company to pay the claim. Which of the following should be
done?
A. Explain to the patient the codes are correct and you cannot change the diagnosis unless you
have her consent in writing.
B. Have the provider or coder review the encounter to see if another diagnosis is appropriate
before making any changes to the codes.
C. Change the diagnosis so that the insurance company will pay the claim because a service was
rendered and should be paid.
D. Submit an appeal for the insurance company to reconsider the claim and include a copy of the
medical record for the date of service in question. - CORRECT ANSWER: B. Have the provider
or coder review the encounter to see if another diagnosis is appropriate before making any
changes to the codes.
Advances in technology in the medical practice have increased efficiencies in many areas. Which
of the following is LEAST impacted in increasing efficiencies?
A. Patient response to care
B. Real-time claim adjudication
C. Electronic payment posting
D. Claim editing prior to submission - CORRECT ANSWER: A. Patient response to care
,As a manager you are preparing to apply for a large bank loan. In so doing, you will need to
represent to the bank the overall financial strength of your business including money coming in,
money owed to you, and money that you owe to other people. Which financial statement is best
used to represent the current status of your practice in this regard? - CORRECT ANSWER: The
balance sheet is a snapshot of a business' financial condition at a specific point in time. It
includes values for assets, liabilities, and stockholders' equity.
As a manager, you are considering whether to purchase a new diagnostic device. The price of the
device is $20,000 which will be paid in equal payments over 4 years. The average revenue you
can expect per test is $40. The cost of supplies for each test is $5. Not accounting for staff costs,
how many tests would need to be performed each year to break even? - CORRECT ANSWER:
This is found by dividing the yearly cost of the equipment (20,000/4= 5,000) by the profit from
each test performed (40-5=35). The result is 5, = 142.9. Therefore, 143 tests would need
to be performed to cover the cost of the equipment and break even.
As the practice manager, it is your responsibility to minimize risk. To accomplish this, you
perform a risk analysis. During the analysis you find that the refrigerator where medications are
stored is not cooling to the appropriate temperature. Which of the following is NOT a step in
performing a risk analysis?
A. Determine the likelihood the risk will cause an adverse effect.
B. Quickly resolve all risks identified.
C. Determine the financial impact if the risk is not resolved.
D. Determine the level of risk to the practice. - CORRECT ANSWER: B. Quickly resolve all
risks identified.
Based on the following productivity dashboard, what valuable information can be derived to use
in a conversation with a physician who is upset about decreasing compensation?
I. The reason compensation is decreasing is because production levels are below MGMA mean
production levels
II. The provider's productivity was on track with expectations during the first part of the year but
has fallen behind in the latter part of the year.
, III. Overall the average production of the provider should still support current compensation
levels
IV. The manager can review trends of the providers practice to identify why there were
unexpected drops in production in May - CORRECT ANSWER: C. II is correct
Calculate the days in A/R based on the following numbers over a 2 month (60 day) period of
time. Total charges = $932,000A/R balance = $616,000Average charge=$225 - CORRECT
ANSWER: To determine the total days in A/R the equation is Total A/R/(Total charges/# of
days). For this example:$616,000$932,000/60
Answer is 40
Determine the physician's compensation for the first quarter using the percentage of net
professional revenue model with the information provided below at a 50 percent compensation
percentage. - CORRECT ANSWER: B. $46,931
During a specific month, your practice appears to have consistent productivity and charges
submitted. Expenses also appear to be in line and consistent. However, you notice your accounts
receivable has increased dramatically over the month. Based on this information, which of the
following statements would be accurate?
I. The income on a cash-based income statement should decrease
II. The income on an accrual-based income statement would decreaseIII. There should not be a
significant difference in beginning and ending cash amounts on your cash flow statement
IV. The equity on your balance sheet should remain fairly constant
V. The amount of assets on your balance sheet will grow higher than will your liabilities and
equity. - CORRECT ANSWER: If accounts receivable spike during a month, that means fewer
payments have been received, which will decrease collections and the income on the income
statement. Decreased collections will also negatively impact your cash flow statement which
monitors cash levels in your practice. Because accrual based accounting measures income based
on charges, it would not be affected. Equity on your balance sheet is not directly affected by a
change in cash flow as assets include both cash and accounts receivable. Finally, assets must
always equal liabilities and equity on a balance sheet.
