ACHE BOG SAMPLE TEST EXAMINATION TEST
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A+
⩥ Financial risk is an element in capital investment decisions and is
determined by:
a. the riskiness of the firm to the equity holders, assuming no debt
financing is used.
b. The additional risk placed on the firm when debt financing is used
c. the risk inherent in the firm's beta coefficient as determined by
industry levels.
d. the total riskiness of the firm's return on assets (ROA) and its market
portfolio. Answer: b. The additional risk placed on the firm when debt
financing is used
⩥ The asset turnover ratio is useful in measuring managerial
performance because it indicates the:
a. amount of resources required to generate a dollar of revenue
b. profitability per dollar of revenue
c. effectiveness of capital structure decisions
d. effective use of current assets. Answer: a. amount of resources
required to generate a dollar of revenue
,⩥ A weighted average cost of capital is the:
a. accounting cost to the organization of producing all required returns to
capital
b. economic cost to the organization of producing all required returns to
capital
c. weighted average required rate of return adjusted downward in
accordance with GAAP
d. correct discount rate valuing total cash flows received by equity
suppliers. Answer: b. economic cost to the organization of producing all
required returns to capital
⩥ In general, the net present value calculation assume:
a. the discount rate is constant over the life of the decision.
b. the organization is a for profit entity
c. future cash flows are known with certainty.
d. borrowing and lending rates are equal with each period. Answer: d.
borrowing and lending rates are equal with each period
⩥ The difference between an accounting break-even point and an
economic break-even point is that:
a. the economic break-even point provides the required rate of return to
all suppliers of capital to the provider
b. the economic break-even point does not recognize expense category
, c. the accounting break-even point provide s for total financial
requirements
d. there is no difference. Answer: a. the economic break-even point
provides the required rate of return to all suppliers of capital to the
provider
⩥ Under the capitation, the risks of over-utilization are shifted to the:
a. patient receiving the health service
b. provider of the health service
c. third party payors
d. health insurance company. Answer: b. provider of the health service
⩥ Which of the following ratios would be used to estimate cask flow for
a specific time period:
a. Receivable balance TO Average daily revenue for period
b. Net Account receivable TO Gross account receivables
c. Cash collected during period TO Revenue for period
d. Deduction from revenue TO Gross revenue for period. Answer: c.
Cash collected during period TO Revenue for period
⩥ In developing workload measurements for estimating manpower
requirements for budget preparation, the analyst should first:
a. develop relative units for each cost center
b. predict payor mix for the budget year
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A+
⩥ Financial risk is an element in capital investment decisions and is
determined by:
a. the riskiness of the firm to the equity holders, assuming no debt
financing is used.
b. The additional risk placed on the firm when debt financing is used
c. the risk inherent in the firm's beta coefficient as determined by
industry levels.
d. the total riskiness of the firm's return on assets (ROA) and its market
portfolio. Answer: b. The additional risk placed on the firm when debt
financing is used
⩥ The asset turnover ratio is useful in measuring managerial
performance because it indicates the:
a. amount of resources required to generate a dollar of revenue
b. profitability per dollar of revenue
c. effectiveness of capital structure decisions
d. effective use of current assets. Answer: a. amount of resources
required to generate a dollar of revenue
,⩥ A weighted average cost of capital is the:
a. accounting cost to the organization of producing all required returns to
capital
b. economic cost to the organization of producing all required returns to
capital
c. weighted average required rate of return adjusted downward in
accordance with GAAP
d. correct discount rate valuing total cash flows received by equity
suppliers. Answer: b. economic cost to the organization of producing all
required returns to capital
⩥ In general, the net present value calculation assume:
a. the discount rate is constant over the life of the decision.
b. the organization is a for profit entity
c. future cash flows are known with certainty.
d. borrowing and lending rates are equal with each period. Answer: d.
borrowing and lending rates are equal with each period
⩥ The difference between an accounting break-even point and an
economic break-even point is that:
a. the economic break-even point provides the required rate of return to
all suppliers of capital to the provider
b. the economic break-even point does not recognize expense category
, c. the accounting break-even point provide s for total financial
requirements
d. there is no difference. Answer: a. the economic break-even point
provides the required rate of return to all suppliers of capital to the
provider
⩥ Under the capitation, the risks of over-utilization are shifted to the:
a. patient receiving the health service
b. provider of the health service
c. third party payors
d. health insurance company. Answer: b. provider of the health service
⩥ Which of the following ratios would be used to estimate cask flow for
a specific time period:
a. Receivable balance TO Average daily revenue for period
b. Net Account receivable TO Gross account receivables
c. Cash collected during period TO Revenue for period
d. Deduction from revenue TO Gross revenue for period. Answer: c.
Cash collected during period TO Revenue for period
⩥ In developing workload measurements for estimating manpower
requirements for budget preparation, the analyst should first:
a. develop relative units for each cost center
b. predict payor mix for the budget year
