CFO Interview Test

Answer Key
Name __________________________________

Date _________________

Calculation Questions
In the following three questions, Net Patient Revenue is $300,000 for the month.
Express each item below as a Percentage of Net Patient Revenue.
1.

Medication costs $25,000 = _________%. _________% would be

considered acceptable. [8.3%; 8%]

2.

RN Salaries & Wages $55,000 = _________%. _________% would be

considered acceptable. [18.3%; 15%]

3.

Indirect Costs $105,000 = _________%. _________% would be

considered acceptable. [35%; 30%]

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 1 of 7

CFO Interview Test

Answer Key

Basic Accounting Knowledge

An understanding of accounting is important to be a CFO. This section contains
BASIC accounting questions.
4.

What are the natural positions of the following account categories?

Account Category

Cash
Accounts Receivable
Accounts Payable
Unearned Revenue
Fund Balance/Retained Earnings
Accumulated Depreciation
Investment Income
Hospice Patient Revenue
Medications
Office Supplies
Lease Deposit
Major Moveable
Pass-Through R&B Expense
Restricted Fund
Salary Expense
Contributions

5.

Debit
X
X

Credit

X
X
X
X
X
X
X
X
X
X
X
X
X
X

Create a journal entry to record $12,000 of Routine Hospice Homecare

Billing.

Account Name
Patient Accounts Receivable
Hospice Routine Revenue

Debit
12,000

Credit
12,000

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 2 of 7

CFO Interview Test

Answer Key
6.

Create a journal entry to record $10,000 of Medication costs.

Account Name
Medication Expense
Accounts Payable (or Cash)

7.

Credit
10,000

Create a journal entry to record an accrued payroll with the following

factors: Earnings of $10,000, FICA 15.3%, Pension 5%, Health
Insurance $1,000, Federal Taxes 10%, State Taxes 5%. Health and
Pension expenses are not payroll deductions.

Account Name
Pension Payable
Pension Expense
Salaries Expense
FICA Expense (company portion)
FICA Liability
Health Insurance Payable
Health Insurance Expense
Accrued Payroll
State Taxes Payable
Federal Taxes Payable

8.

Debit
10,000

Debit

Credit
500

500
10000
765
1530
1000
1000
7735
500
1000

Create the journal entry to record the Pass-Through treatment of

$14,000 of Medicaid Nursing Home Room & Board billing and its
offsetting expense entry.

Account Name
R&B Revenue
Accounts Receivable

Debit
14,000

R&B Expense
Unvouchered Accounts Payable

14,000

Credit
14,000

14,000

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 3 of 7

CFO Interview Test

Answer Key
9.

Create a journal entry to record the purchase of a Misys at a cost of

$50,000 with installation fees of $5,000 and training fees of $10,000.

Account Name
Major Moveable (Capital Account)
Cash (Accounts Payable)

10.

Debit
65,000

65,000

Create the entries for a gift of $10,000 for Community Bereavement.

This is a _____Restricted________ gift.

Account Name
Cash
Contribution: Community Bereavement

Debit
10,000

Fund Balance/Retained Earnings

Restricted Fund: Community Bereavement

10,000

11.

Credit

Credit
10,000

10,000

_Net Income or Net Assets_ appears in each of these financial

statements and should always be the same amount in each statement.
a. Balance Sheet
b. Statement of Income
c. Statement of Cash Flows (Indirect Method)

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 4 of 7

CFO Interview Test

Answer Key

Hospice 101 Optional Section ONLY for

CFO Candidates with Prior Hospice
Experience
12.

List the 4 primary reimbursement forms (levels of care) of the Hospice

Medicare Benefit.

1) Routine Home Care

2) General Inpatient Care
3) Continuous Care
4) Respite Care
13.

Respite Care can be used a maximum of _______ days per episode. [5].

14.

Continuous Care must be at least ____________ hours and ______%

must be ______________________. A better name for Continuous Care is
_______________ Care. [8, 50%, nursing, Crisis]

15.

A Continuous Care day starts from midnight and ends at ______________

[midnight].

16.

The Hospice Medicare Benefit is part of Medicare Part ________. [A]

17.

Attending Physicians continue to bill Medicare Part __________. [B]

18.

The hospice Medical Director bills Medicare part ________. This is a pervisit fee and it is in addition to the normal level of care billing. [A]

19.

Consulting Physician Services are billing to Medicare Part ______ and are
billed by the hospice on behalf of the physician. A __________ needs to
be in place for Consulting Physician Services. The reason this is billed
through the hospice is that it is the hospices responsibility to
_________________________________. [A, contract, professionally
manage the care]

20.

The Hospice Medicare Benefit is divided into periods. Patients are

reviewed for appropriateness and are either recertified or discharged
during the Utilization Review process. The number of days in the first
periods are:

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 5 of 7

CFO Interview Test

Answer Key
Period 1) 90
Period 2) 90
Period 3) 60
Period 4) 60
21.

A physician rounding in a hospice inpatient unit can bill for acute patients
usually _________ a day depending upon the patients need and the
hospices ideals of care. [once]

22.

When a patient is in a hospital for Inpatient care, the hospice must have a
__________ with the hospital. The ____________ is paid for the day of
discharge/death as contrasted with the way hospitals are normally paid on
the day of discharge/death. [contract, hospice]

23.

Medicare FIs (fiscal intermediaries) pay the _________ of the billed

amount and the rate set by CMS. If you bill less than the rate set by CMS,
you will receive what you billed and the FI is under ______ obligation to
pay a hospice the difference. [lesser, no]

24.

One of the biggest problems in hospice billing is late or incorrect _______

of __________ information. [level, care]

25.

To alert a Medicare FI that a patient has elected hospice, a _______ is

sent. [NOE or 81A]

26.

To elect the Hospice Medicare Benefit, what needs to occur?

1) A physician needs to sign a certification of terminal illness (6 months or less)

2) The patient needs to sign a consent statement or election statement

27.

_______ is a prospective payment system option for hospices and allows a

hospice to receive a set amount per month based on forecasted Medicare
revenue. It is used by few hospices, but it can be useful for cash flow
management. [PIP]

28.

The acronym ADR means ______________________________.

[Additional Data Request]

29.

_________________ billing is where the hospice must get paid for the
previous Medicare invoices before subsequent invoices can be paid. All
invoices must be paid in order. [Sequential]

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 6 of 7

CFO Interview Test

Answer Key
30.

Nursing Homes bills the _________________ for Medicaid Room and

Board at the facilitys Medicaid rate less the patient liability portion. The
Nursing Home is responsible for billing and collecting the
______________. The Hospice is reimbursed by Medicaid at a rate that is
usually lower than the hospice rate. [hospice, patient liability]

CAP & Cost Report

31.

The Hospice Medicare Benefit has two CAPs, ________________ and

_______________. [Aggregate, Inpatient]

32.

The _________________ CAP limits the number of Medicare GIP days to

__________%. [Inpatient, 20%]

33.

The _________________ CAP limits the total amount that a hospice can
receive from the Medicare system within a year. It is computed by taking
an amount set by CMS and multiplying it by the number of Medicare
_____________________. This CAP period runs from _______________
to ________________ and is based on the cash payments made by the FI.
The Medicare Admission period is not the same and runs from
_________________ to _______________. [Aggregate, Admissions,
November 1st , October 31st ,September 28th, September 27th]

34.

The Hospice Medicare Cost Report is due ___________ months after the
fiscal year-end. Hospices are required to be on the ____________ basis
of accounting. [5, accrual]

_______________________________________________________________________________________________
Multi-View, Incorporated
PO Box 2327
Hendersonville, NC 28793
828-698-5885 or multiviewinc.com
Page 7 of 7