CHFP Online Practice Questions and Answers

Bad debt expense is:

A. the estimate of patient accounts payables that will not be collected.

B. the estimate of patient accounts receivables that will be collected.

C. the estimate of patient accounts receivables that will not be collected.

D. the estimate of patient accounts payables that will be collected.

Under a compensating balance:

A. the debtor is required to maintain a designated dollar amount on withdraw with the bank.

B. the borrower is required to maintain a designated dollar amount on deposit with the bank.

C. the borrower is not required to maintain a designated dollar amount on deposit with the bank.

D. the debtor is not required to maintain a designated dollar amount on withdraw with the bank.

Approximate interest rate is:

A. The annual interest rate incurred by not taking advantage of a supplier's discount offer to pay bills early.

B. The half year interest rate incurred by not taking advantage of a debtor's discount offer to pay bills early.

C. The annual interest rate incurred by taking advantage of a supplier's discount offer to pay bills late.

D. The annual interest rate incurred by taking advantage of a debtor's discount offer to pay bills late.

An amount paid above and beyond the book value of an asset when it is sold, representing the value of intangible factors refers to:

A. Salvage value

B. Pro forma statement

C. Goodwill

D. Annuity

Which funds typically equivalent to one year of principal and interest payments, are set aside with the trustee to act as a safeguard against default during the life of the loan period?

A. Interest investment funds

B. Debt service reserve funds

C. Loan period payment funds

D. Debt active funds

Total operating revenues divided by Net plant and equipment makes:

A. Total asset activity measure

B. Total revenue turnover

C. Variable asset turnover ratio

D. Fixed asset turnover ratio

A factor that when multiplied by a stream of equal payments equals the future value of that stream, this refers to:

A. Present value factor of an asset

B. Future value factor of an annuity

C. Future value factor of money

D. None of the above

Total variable cost changes directly and per unit stays variable with a change in activity refers to variable cost.

A. True

B. False

A lease that lasts for an extended period, up to the life of the leased asset and cannot be cancelled without penalty refers to:

A. Decision lease

B. Principal lease

C. Capital lease

D. Operating lease

____________ is the tendency health care practitioners to do more testing and to provide more care for patients than might otherwise be necessary to protect themselves against potential litigation.