HRB FINAL PRACTICE EXAMINATION
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ 1. Which of the following best defines a "procedure"?
A. Detailed description for carrying out policy
B. A measurable objective to be achieved
C. Official position on a work-related issue
D. Rules and regulations.
Answer: A. Detailed description for carrying out policy
◍ 2. This standard is based on the basic principle established by the
U. S. Supreme Court in the 1976 landmark case Estelle v. Gamble.
A. Access to care
B. Inmate workers
C. Medical autonomy
D. Privacy of care.
Answer: A. Access to care
◍ 3. Which of the following is least important in determining the number of
health staff needed to deliver services in a correctional setting?
A. Needs of inmate population
B. Approved budget
C. Delivery system
D. Proportion of female inmates.
Answer: B. Approved budget
◍ What income reporting form should an independent contractor sometimes
receive from the person who paid him for his services?.
Answer: Form 1099-MISC (15.6)
,◍ Schedule C, Line F asks for the accounting method used in the
business.What is the difference between the cash method and the accrual
method of accounting?.
Answer: • Under the accrual method, total sales and total charges for
services are included in income even though payment may be received in
another tax year.• Under the cash method, only income actually received or
expenses actually paid during the year are included. (15.5)
◍ What does it mean if a proprietor "materially participates" in the business?.
Answer: He is active in running the business in a substantial way on a
day-to-day basis. (15.5)
◍ 4. The following individuals, in the absence of any written authorization
from the adult inmate-patient, may have access to that patient's medical
records:
A. Inmate's attorney
B. Private physician
C. U.
S. congressman
D. None of the above.
Answer: D. None of the above
◍ Why is it important to know whether or not the proprietor materially
participates?.
Answer: If the proprietor does not materially participate, any loss from the
business is a passive loss and generally may be currently deducted only
against passive income. (15.6)
◍ What are returns and allowances?.
Answer: • Amounts that were refunded to customers who returned
merchandise for refund or partial refund.• These amounts are subtracted
from gross receipts. (15.6)
◍ 5. Which statement below best describes universal precautions?
A. Adhering to advisories published by the Centers for Disease Control and
Prevention for disposing of infectious waste
, B. Taking protective steps with patients known to have infectious diseases
so as to minimize exposure of workers and others to contagious disease
C. Assuming all patients present a potential for transmission of infectious
disease and adopting the same protective techniques with every patient
D. Using masks, gowns and gloves for protection from infectious disease.
Answer: C. Assuming all patients present a potential for transmission of
infectious disease and adopting the same protective techniques with every
patient
◍ How is cost of goods sold determined?.
Answer: Beginning inventory plus purchases, plus labor, supplies,
depreciation, etc. attributable to product manufacture or preparation for sale,
minus ending inventory. (15.7)
◍ What is the Access to Care standard?.
Answer: Inmates have access to care for their serious medical, dental, and
mental health needs.
◍ If the client has contract labor, what should you remind the client that they
should do?.
Answer: • Provide a Form 1099-MISC to any independent contractor who
worked and earned $600 or more. (15.9)
◍ Define "access to care" (three criteria).
Answer: 1. In a timely manner, a patient is seen by a qualified health care
professional, 2. is rendered a clinical judgment,3. and receives care that is
ordered
◍ What is the purpose of self-employment tax?.
Answer: To pay social security and medicare taxes. (15.14)
◍ What amounts does a proprietor have "at risk"?.
Answer: Amounts invested in the business plus any business debts for which
the proprietor is personally liable. (15.16)
◍ What is the basic principle established by the
U. S. Supreme Court landmark case in 1976 Estelle v. Gamble?.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ 1. Which of the following best defines a "procedure"?
A. Detailed description for carrying out policy
B. A measurable objective to be achieved
C. Official position on a work-related issue
D. Rules and regulations.
Answer: A. Detailed description for carrying out policy
◍ 2. This standard is based on the basic principle established by the
U. S. Supreme Court in the 1976 landmark case Estelle v. Gamble.
A. Access to care
B. Inmate workers
C. Medical autonomy
D. Privacy of care.
Answer: A. Access to care
◍ 3. Which of the following is least important in determining the number of
health staff needed to deliver services in a correctional setting?
A. Needs of inmate population
B. Approved budget
C. Delivery system
D. Proportion of female inmates.
Answer: B. Approved budget
◍ What income reporting form should an independent contractor sometimes
receive from the person who paid him for his services?.
Answer: Form 1099-MISC (15.6)
,◍ Schedule C, Line F asks for the accounting method used in the
business.What is the difference between the cash method and the accrual
method of accounting?.
Answer: • Under the accrual method, total sales and total charges for
services are included in income even though payment may be received in
another tax year.• Under the cash method, only income actually received or
expenses actually paid during the year are included. (15.5)
◍ What does it mean if a proprietor "materially participates" in the business?.
Answer: He is active in running the business in a substantial way on a
day-to-day basis. (15.5)
◍ 4. The following individuals, in the absence of any written authorization
from the adult inmate-patient, may have access to that patient's medical
records:
A. Inmate's attorney
B. Private physician
C. U.
S. congressman
D. None of the above.
Answer: D. None of the above
◍ Why is it important to know whether or not the proprietor materially
participates?.
Answer: If the proprietor does not materially participate, any loss from the
business is a passive loss and generally may be currently deducted only
against passive income. (15.6)
◍ What are returns and allowances?.
Answer: • Amounts that were refunded to customers who returned
merchandise for refund or partial refund.• These amounts are subtracted
from gross receipts. (15.6)
◍ 5. Which statement below best describes universal precautions?
A. Adhering to advisories published by the Centers for Disease Control and
Prevention for disposing of infectious waste
, B. Taking protective steps with patients known to have infectious diseases
so as to minimize exposure of workers and others to contagious disease
C. Assuming all patients present a potential for transmission of infectious
disease and adopting the same protective techniques with every patient
D. Using masks, gowns and gloves for protection from infectious disease.
Answer: C. Assuming all patients present a potential for transmission of
infectious disease and adopting the same protective techniques with every
patient
◍ How is cost of goods sold determined?.
Answer: Beginning inventory plus purchases, plus labor, supplies,
depreciation, etc. attributable to product manufacture or preparation for sale,
minus ending inventory. (15.7)
◍ What is the Access to Care standard?.
Answer: Inmates have access to care for their serious medical, dental, and
mental health needs.
◍ If the client has contract labor, what should you remind the client that they
should do?.
Answer: • Provide a Form 1099-MISC to any independent contractor who
worked and earned $600 or more. (15.9)
◍ Define "access to care" (three criteria).
Answer: 1. In a timely manner, a patient is seen by a qualified health care
professional, 2. is rendered a clinical judgment,3. and receives care that is
ordered
◍ What is the purpose of self-employment tax?.
Answer: To pay social security and medicare taxes. (15.14)
◍ What amounts does a proprietor have "at risk"?.
Answer: Amounts invested in the business plus any business debts for which
the proprietor is personally liable. (15.16)
◍ What is the basic principle established by the
U. S. Supreme Court landmark case in 1976 Estelle v. Gamble?.
