HFMA CHFP Practice Exam Questions & Answers
7 Free Questions
· Last reviewed: October 9, 2026
· Prepared & Reviewed by the ValidExamDumps Editorial Team
Exam Facts
HFMA CHFP Exam Details
Key details for this exam, checked against the published exam outline
310
Practice Questions (Our Bank)
120 minutes
Exam Duration
- Exam Code
- CHFP
- Full Name
- Certified Healthcare Financial Professional
- Issuing Body
- Healthcare Financial Management Association
- Question Format (Our Bank)
- Multiple Choice
- Delivery
- Online proctored via HFMA's learning management system
- Eligibility
- Active HFMA membership (professional, business partner, or student) required. Completion of Module I (HFMA Business of Health Care) assessment required before registering for Module II (Operational Excellence).
- Validity
- Three years, with requirement to maintain active HFMA membership and complete 60 hours of eligible education activities every three years
Practice Questions
Free CHFP Practice Questions
Each question shows the correct answer and an explanation of why it is right
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Which is the ideal platform to calculate net present value because most, if not all, have built-in functions that simplify the determination of NPV?
Correct Answer:
B
Explanation
Break-even analysis is a core cost management tool that helps organizations understand their financial position. At the break-even point, total revenues exactly match total costs, meaning the organization neither makes a profit nor incurs a loss. This concept is essential for price setting and profit analysis, which are key components of cost management strategy. Understanding break-even helps managers set prices appropriately and evaluate whether current operations are financially sustainable.
A percentage of the unused portion of a credit line that is charged to the potential borrower is called:
Correct Answer:
A
Explanation
Salvage value is a fundamental accounting concept used in depreciation calculations and asset valuation. It represents the expected cash proceeds from selling an asset at the end of its useful life, assuming the asset is no longer needed by the organization. This amount is subtracted from the asset's original cost to determine the depreciable base. Understanding salvage value is critical for proper financial statement preparation and asset accounting in healthcare organizations.
Which are a measure of the amount of resources used or consumed in providing a service, not cash-out flows?
Correct Answer:
D
Proceeds lost by forgoing other opportunities refer to:
Correct Answer:
A
Explanation
The acid test ratio, also called the quick ratio, provides the most stringent test of liquidity among these three measures. The current ratio includes all current assets and liabilities. The quick ratio excludes inventory, which may take time to convert to cash. The acid test ratio goes further by excluding both inventory and prepaid expenses, looking only at the most liquid assets like cash and receivables. This makes it the most conservative and stringent measure of a company's ability to meet short-term obligations.
The general decision rule regarding NPV is:
If NPV > 0, accept or reject the project
If NPV < 0, reject the project
If NPV = 0, accept the project
Correct Answer:
B
Explanation
A transaction note is a short-term unsecured loan taken for a specific business purpose, commonly used in healthcare working capital management. This type of financing does not require collateral and is typically repaid within a relatively short timeframe. Transaction notes are distinct from long-term debt instruments and serve organizations that need quick access to capital for specific operational needs. Understanding short-term financing options is essential for managing working capital effectively in healthcare settings.
The rules to record a transaction under the accrual basis of accounting includes:
Correct Answer:
B
Explanation
Healthcare providers hold cash for three distinct reasons rooted in working capital management. The daily operations motive means keeping enough cash to pay bills and cover regular expenses. The precautionary motive involves holding extra cash as a safety buffer for unexpected costs or revenue shortfalls. The speculative motive allows organizations to take advantage of investment opportunities when they arise. This concept is fundamental to understanding how healthcare organizations manage their cash position and working capital effectively.
Question 7
An agreement established by the bank and the borrower that legally requires the bank to loan money to the borrower at any time requested up to the pre-negotiated limit is called:
Correct Answer:
B
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Domain 1: The Business of Healthcare
Overview of the US healthcare system, reform efforts, and the financial management role within healthcare organizations. Candidates are assessed on their understanding of the hierarchy of management roles and their impact on financial decision-making.
Domain 2: The Big Picture of Healthcare
Coverage of the current state of the US healthcare system, payment systems, and reform initiatives. Provides context for the financial management role within healthcare organizations and its interaction with other departments.
Domain 3: Accounting Principles and Financial Statements
Fundamental accounting concepts, including analysis of financial statements, management reports, and cost analysis principles. Tests knowledge of accounting terminology and its application to healthcare organizations.
Sample questions from this domain above:
Q2Q3Q4
Domain 4: Cost Management and Strategic Financial Issues
Cost-finding methods, price setting, and profit analysis. Includes revenue and performance budgeting, variance analysis, and strategies for controlling operating results.
Sample question from this domain above:
Q1
Domain 5: Basics of Strategic Planning and Budgeting
Strategic planning, budgeting concepts, and performance measurement. Covers how these tools assist healthcare organizations in achieving their financial goals.
Domain 6: Revenue Cycle and Working Capital Management
The critical revenue cycle in healthcare financial management, including its impact on cash flow, working capital management, and the role of metrics and data in decision-making.
Sample questions from this domain above:
Q5Q6
Domain 7: Evolving Reimbursement and the Need for Analytics
The evolving reimbursement landscape including the Affordable Care Act, accountable care organizations, and bundled payments. Emphasizes the growing need for business intelligence and analytics.
Domain 8: Population Health Management and Aligning Clinicians and Finance Professionals
Importance of aligning clinical and financial perspectives to drive value-based care. Explores how collaboration between these areas leads to improved healthcare outcomes and enhanced patient experiences.
FAQ
CHFP Exam FAQ
Common questions about the exam itself
What is the CHFP certification and which healthcare roles is it designed for?
The CHFP is HFMA's flagship certification for demonstrating deep understanding of healthcare finance, and is geared toward financial professionals, clinical and nonclinical leaders, and health plans whose jobs require understanding the financial realities of healthcare.
Do I need HFMA membership to earn the CHFP credential?
HFMA professional or business partner membership is a required aspect to hold and maintain the CHFP credential.
What are the prerequisites for taking the CHFP exam?
To be eligible to register for Module II of the program, you must successfully complete the Module I course and exam, and maintain active HFMA membership.
How is the CHFP exam delivered, and do I need to visit a testing center?
The examinations are delivered via HFMA's learning management system on the HFMA website, and candidates do not need to travel to a testing center.
How long does the CHFP certification stay valid?
CHFP certification must be maintained every three years by remaining an active HFMA member in good standing and completing 60 hours of eligible education activities every three years.
Is the CHFP a single exam or are there multiple modules?
The CHFP credential is earned upon successful completion of two modules, both included in your HFMA all-access membership subscription, and this package includes the HFMA Business of Health Care and Operational Excellence modules.
What topics does the CHFP exam cover?
Module I covers healthcare finance including risk mitigation, evolving payment models, healthcare accounting and cost analysis, strategic finance, and financial resource management, while Module II focuses on applying business acumen in healthcare through exercises and case-based scenarios.
Can student members earn the CHFP credential?
Paid student members are eligible to register for and take both modules of the CHFP certification program included with membership, and student members who successfully complete the CHFP requirements will earn their designation upon assuming Professional or Business Partner level member status.
How does the CHFP compare to the FHFMA credential?
The CHFP is HFMA's entry-level healthcare finance certification, while FHFMA (Fellow of HFMA) is an advanced credential for experienced professionals. Both require HFMA membership and have similar three-year maintenance requirements, but FHFMA involves additional requirements beyond the CHFP modules.
What happens if I don't maintain my CHFP certification?
If you are not an HFMA member, the maintenance fee for the CHFP certification is $100 per certification. Failing to maintain active membership or complete required education hours will result in loss of the certification credential.
