CPPM/AAPC EXAM QUESTIONS AND ANSWERS
LATEST UPDATE (GRADED A+)
Most insurance payers will pay a predetermined set amount for each procedure code . What is this
payment methodology known as ?
Prospective Fee Schedule
Using the denial code / reason report below , the performance of multiple procedures on the same
day of service is :
Is not as significant as claims denied for timely filing .
From the productivity chart below , Dr. Wannabee's use of these codes is :
The service generating the most charges is 99213 .
Based on the A / R ageing report provider , the practice manager should focus on :
Collecting payments from the commercial insurance that are 31-60 day outstanding .
When a practice sees revenue decreasing , a manager should evaluate : Select all that apply .
a . Patient volume .
b . Staff errors
c . Coding
d . Billing
e . Insurance delays
f . Denials
a . Patient volume . b . Staff errors c . Coding d . Billing e . Insurance delays f . Denials
Calculate Total charges = $ 700,000 , A / R balance $ 558,039 the days in A / R based on the following
numbers over a 2 - month ( 60 - day ) period .
48
Which of the following is essential for accurate charge capture ?
Review documentation of the services to make sure all codes are reported .
What is a benefit of using an ERA ( electronic remittance advice ) ?
Accurate and efficient payment and adjustment posting .
Chart 1 - Breakeven Analysis for the Practice
500,000
Using Chart 1 above , the revenue required for breaking even would need to increase if :
, Fixed expenses changed to 400,000
When reviewing an income statement , what is the term that refers to the profit the practice made
over a specific time period ?
Net Income
Which of the following is an example of cash based accounting ?
In order to prepare to office Botox in September , the practice purchases the supply in August and
reports the expense in August .
Which of the following statements does NOT represent the effective use of a budget ?
To monitor the debt to equity ratio of a clinic
In order to determine the cost of performing pulmonary function tests in the office , the practice
manager identifies the cost of the machine , the respiratory therapist's time to perform the test and
all supplies needed . This scenario is an example of
Activity based costing
The basic purpose for instilling financial controls in your accounting processes is to :
Separate basic functions so not all are performed by the same person
When looking at where a clinic might be able to cut costs , which financial statement is most useful ?
breakeven Income statement
What concept below defines the amount of money owed to others that has not yet been paid ?
Accounts payable
What financial statement is used to maintain awareness of the funds ( cash ) available to support
ongoing business operations in your practice ?
Cash flow statement
In which of the following scenarios would it generally be preferable to purchase equipment instead of
leasing it ?
A clinic that has a strong cash flow
The business plan of a new practice includes expansion into a multispecialty clinic . The administration
plans to allow multiple owners over time . Which of the following corporate structures would allow
for unlimited owners and limit the amount of taxes ?
Limited Liability Company
Which of the following options would be the most beneficial in managing costs ?
Participation in a GPO
LATEST UPDATE (GRADED A+)
Most insurance payers will pay a predetermined set amount for each procedure code . What is this
payment methodology known as ?
Prospective Fee Schedule
Using the denial code / reason report below , the performance of multiple procedures on the same
day of service is :
Is not as significant as claims denied for timely filing .
From the productivity chart below , Dr. Wannabee's use of these codes is :
The service generating the most charges is 99213 .
Based on the A / R ageing report provider , the practice manager should focus on :
Collecting payments from the commercial insurance that are 31-60 day outstanding .
When a practice sees revenue decreasing , a manager should evaluate : Select all that apply .
a . Patient volume .
b . Staff errors
c . Coding
d . Billing
e . Insurance delays
f . Denials
a . Patient volume . b . Staff errors c . Coding d . Billing e . Insurance delays f . Denials
Calculate Total charges = $ 700,000 , A / R balance $ 558,039 the days in A / R based on the following
numbers over a 2 - month ( 60 - day ) period .
48
Which of the following is essential for accurate charge capture ?
Review documentation of the services to make sure all codes are reported .
What is a benefit of using an ERA ( electronic remittance advice ) ?
Accurate and efficient payment and adjustment posting .
Chart 1 - Breakeven Analysis for the Practice
500,000
Using Chart 1 above , the revenue required for breaking even would need to increase if :
, Fixed expenses changed to 400,000
When reviewing an income statement , what is the term that refers to the profit the practice made
over a specific time period ?
Net Income
Which of the following is an example of cash based accounting ?
In order to prepare to office Botox in September , the practice purchases the supply in August and
reports the expense in August .
Which of the following statements does NOT represent the effective use of a budget ?
To monitor the debt to equity ratio of a clinic
In order to determine the cost of performing pulmonary function tests in the office , the practice
manager identifies the cost of the machine , the respiratory therapist's time to perform the test and
all supplies needed . This scenario is an example of
Activity based costing
The basic purpose for instilling financial controls in your accounting processes is to :
Separate basic functions so not all are performed by the same person
When looking at where a clinic might be able to cut costs , which financial statement is most useful ?
breakeven Income statement
What concept below defines the amount of money owed to others that has not yet been paid ?
Accounts payable
What financial statement is used to maintain awareness of the funds ( cash ) available to support
ongoing business operations in your practice ?
Cash flow statement
In which of the following scenarios would it generally be preferable to purchase equipment instead of
leasing it ?
A clinic that has a strong cash flow
The business plan of a new practice includes expansion into a multispecialty clinic . The administration
plans to allow multiple owners over time . Which of the following corporate structures would allow
for unlimited owners and limit the amount of taxes ?
Limited Liability Company
Which of the following options would be the most beneficial in managing costs ?
Participation in a GPO
