CHFP Online Practice Questions and Answers

The resources that the organization owns, typically recorded at their original costs are called assets.

A. True

B. False

The difference between current assets and current liabilities is called:

A. Net accounting gain

B. Net expenditure

C. Net working capital

D. Net profit

Selling accounts receivable at a discount, usually to a financial institution is called:

A. Factoring

B. Discounted rate

C. Financial accounts

D. None of the above

A smaller portion of a fixed rate bond issue that matures during the early due dates of the issue, typically during the first ten to fifteen years with their own interest rate are called:

A. Callable bonds

B. Early Fixed bonds

C. Early rate bonds

D. Serial bonds

Tax-exempt bonds have higher interest rates than do taxable bonds because investors in tax-exempt bonds must have to pay taxes on the interest income they receive.

A. True

B. False

A preliminary study undertaken by an organization and compiled by the third party to determine and document a project's financial viability refers to:

A. Possibility study

B. Compatibility study

C. Feasibility study

D. Project summary

Future value table is the table of factors that shows the future value of multiple investments at a given interest rate.

A. True

B. False

Service centers, cost centers, profit centers and are the types of responsibility centers.

A. Reliability centers

B. Production centers

C. Investment centers

D. Controlling centers

Which represents the assets, liabilities and net assets for a health care provider?

A. Accounting cycle

B. Balance sheet

C. Income statement

D. Statement of cash flows

______is an agreement established by a bank and a borrower that establishes the maximum amount of funds that could be borrowed and the bank may loan the funds at its own discretion.