Healthcare Finance & Insurance Exam
2026/2027 – 88 Practice Questions with
Answers | PPACA, Medicare, Capitation,
Financial Ratios & GAAP
Description:
Master healthcare finance for 2026/2027 with 88 exam-style questions covering PPACA,
Medicare Parts A-D, capitation, financial ratios, GAAP, and reimbursement
methodologies. Each question includes correct answers and detailed explanations. Perfect for
MHA, MPH, and nursing administration students.
Download now and pass your final with confidence.
, Healthcare Finance Final Exam Study Guide 2026
Section A: Patient Protection and Affordable Care Act (PPACA) of 2010
Question 1
The major provisions of the Patient Protection and Affordable Care Act of 2010 included
which of the following?
A. Banning of preexisting condition coverage limitations only
B. Free preventative care only
C. Medicaid expansion only
D. Banning of preexisting condition coverage limitations, free preventative care, and
Medicaid expansion
Answer: D
Explanation: The PPACA of 2010 contained multiple major provisions, including the
prohibition of denying coverage or charging higher premiums based on preexisting
conditions, requiring most health plans to cover preventative services without patient cost-
sharing, and expanding Medicaid eligibility to include more low-income individuals.
Section B: Healthcare Organization Finance Department
Question 2
Which of the following statement(s) about the finance department at large healthcare
organizations is/are correct?
A. The CFO typically reports directly to the chief executive officer (CEO)
B. The CFO is usually assisted by a comptroller and treasurer
C. The department is headed by the chief financial officer (CFO) (sometimes called the vice
president-finance)
D. All of the above statements are correct
Answer: D
Explanation: In large healthcare organizations, the CFO reports directly to the CEO, is
supported by a comptroller (responsible for accounting and reporting) and treasurer
(responsible for cash management and financing), and heads the finance department, often
holding the title of vice president of finance.
,Section C: Stakeholders in Not-for-Profit Hospitals
Question 3
In a not-for-profit hospital, which of the following are example(s) of a stakeholder?
A. Vendor
B. Employee
C. Community
D. All of the above
Answer: D
Explanation: Stakeholders in not-for-profit hospitals include vendors who supply goods and
services, employees who work for the organization, and the community that the hospital
serves, as all have an interest in the hospital's operations and success.
Section D: Stockholder Rights
Question 4
Stockholders have which of the following right(s)?
A. Claim on residual liquidation proceeds
B. Right of control
C. A possible dividend and/or capital gains
D. All of the above
Answer: D
Explanation: Stockholders possess the right to residual assets upon liquidation after all
creditors are paid, the right to vote on major corporate matters (right of control), and the
potential to receive dividends and capital gains from their investment.
Section E: Finance, Accounting, and Financial Management
Question 5
Which of the following statements about finance, accounting, and financial management is
most correct?
A. Financial management provides the theory, concepts, and tools necessary to help managers
make better financial decisions
B. Accounting and financial management are identical in scope and purpose
, C. Finance focuses exclusively on historical record-keeping
D. Financial management is only relevant for investor-owned organizations
Answer: A
Explanation: Financial management equips managers with the theoretical frameworks,
concepts, and analytical tools required to make informed financial decisions that enhance
organizational value, distinguishing it from the record-keeping focus of accounting.
Section F: Corporate Disadvantages
Question 6
What is a disadvantage of being a corporation?
A. Limited liability for owners
B. Unlimited life span
C. Double taxation of corporate income and shareholder dividends
D. Ease of transferring ownership
Answer: C
Explanation: A major disadvantage of the corporate form is double taxation, where the
corporation pays taxes on its profits and shareholders also pay taxes on dividends received,
unlike pass-through entities such as partnerships or S corporations.
Section G: Non-Finance Activities
Question 7
Which of the following are not finance activities?
A. Facilities management
B. Capital budgeting
C. Working capital management
D. Financial statement analysis
Answer: A
Explanation: Facilities management involves the physical upkeep and operation of buildings
and equipment, which falls under operations management rather than finance. Capital
budgeting, working capital management, and financial statement analysis are core finance
functions.
2026/2027 – 88 Practice Questions with
Answers | PPACA, Medicare, Capitation,
Financial Ratios & GAAP
Description:
Master healthcare finance for 2026/2027 with 88 exam-style questions covering PPACA,
Medicare Parts A-D, capitation, financial ratios, GAAP, and reimbursement
methodologies. Each question includes correct answers and detailed explanations. Perfect for
MHA, MPH, and nursing administration students.
Download now and pass your final with confidence.
, Healthcare Finance Final Exam Study Guide 2026
Section A: Patient Protection and Affordable Care Act (PPACA) of 2010
Question 1
The major provisions of the Patient Protection and Affordable Care Act of 2010 included
which of the following?
A. Banning of preexisting condition coverage limitations only
B. Free preventative care only
C. Medicaid expansion only
D. Banning of preexisting condition coverage limitations, free preventative care, and
Medicaid expansion
Answer: D
Explanation: The PPACA of 2010 contained multiple major provisions, including the
prohibition of denying coverage or charging higher premiums based on preexisting
conditions, requiring most health plans to cover preventative services without patient cost-
sharing, and expanding Medicaid eligibility to include more low-income individuals.
Section B: Healthcare Organization Finance Department
Question 2
Which of the following statement(s) about the finance department at large healthcare
organizations is/are correct?
A. The CFO typically reports directly to the chief executive officer (CEO)
B. The CFO is usually assisted by a comptroller and treasurer
C. The department is headed by the chief financial officer (CFO) (sometimes called the vice
president-finance)
D. All of the above statements are correct
Answer: D
Explanation: In large healthcare organizations, the CFO reports directly to the CEO, is
supported by a comptroller (responsible for accounting and reporting) and treasurer
(responsible for cash management and financing), and heads the finance department, often
holding the title of vice president of finance.
,Section C: Stakeholders in Not-for-Profit Hospitals
Question 3
In a not-for-profit hospital, which of the following are example(s) of a stakeholder?
A. Vendor
B. Employee
C. Community
D. All of the above
Answer: D
Explanation: Stakeholders in not-for-profit hospitals include vendors who supply goods and
services, employees who work for the organization, and the community that the hospital
serves, as all have an interest in the hospital's operations and success.
Section D: Stockholder Rights
Question 4
Stockholders have which of the following right(s)?
A. Claim on residual liquidation proceeds
B. Right of control
C. A possible dividend and/or capital gains
D. All of the above
Answer: D
Explanation: Stockholders possess the right to residual assets upon liquidation after all
creditors are paid, the right to vote on major corporate matters (right of control), and the
potential to receive dividends and capital gains from their investment.
Section E: Finance, Accounting, and Financial Management
Question 5
Which of the following statements about finance, accounting, and financial management is
most correct?
A. Financial management provides the theory, concepts, and tools necessary to help managers
make better financial decisions
B. Accounting and financial management are identical in scope and purpose
, C. Finance focuses exclusively on historical record-keeping
D. Financial management is only relevant for investor-owned organizations
Answer: A
Explanation: Financial management equips managers with the theoretical frameworks,
concepts, and analytical tools required to make informed financial decisions that enhance
organizational value, distinguishing it from the record-keeping focus of accounting.
Section F: Corporate Disadvantages
Question 6
What is a disadvantage of being a corporation?
A. Limited liability for owners
B. Unlimited life span
C. Double taxation of corporate income and shareholder dividends
D. Ease of transferring ownership
Answer: C
Explanation: A major disadvantage of the corporate form is double taxation, where the
corporation pays taxes on its profits and shareholders also pay taxes on dividends received,
unlike pass-through entities such as partnerships or S corporations.
Section G: Non-Finance Activities
Question 7
Which of the following are not finance activities?
A. Facilities management
B. Capital budgeting
C. Working capital management
D. Financial statement analysis
Answer: A
Explanation: Facilities management involves the physical upkeep and operation of buildings
and equipment, which falls under operations management rather than finance. Capital
budgeting, working capital management, and financial statement analysis are core finance
functions.
