ACHE BOG Practice EXAM 2024-2025 QUESTIONS AND ANSWERS 100 % PASS
SOLUTION A+ GRADE
An analysis of proposed capital investment typically includes all of the following except:
a. Cost of capital
b. Cash flow projections
c. Liquidity ratio.
d. Risk assessment. - answer>>C
What in the revenue cycle process is a major impediment to prompt payment?
a. Payment receipt and posting.
b. Claims submission.
c. Poor financial counseling.
d. Claim denial. - answer>>D
When evaluating capital budgeting performance, what is the best indicator of operating leverage?
a. Debt to capitalization ratio.
b. Expense ratio.
c. Average age of plant.
d. Depreciation ratio. - answer>>B
The principles of quality improvement require that healthcare executives change their management
philosophy from
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
,c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - answer>>A
The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions and
determines that her institution has no competitive advantage. Which strategy should she pursue?
a. Target many market segments based on demographics.
b. Prioritize market segments and heavily promote to key groups. c. Advertise broadly to increase
general awareness.
d. Recruit more physicians to admit to the institution. - answer>>B
If the average daily census on an inpatient medical surgical unit is 19, and the productive hours per
patient day target is 7.2, and the productive percentage calculation is 8.5, how many fulltime
equivalents (FTEs) should be budgeted for the productive core staffing?
a. 24.
b. 26.
c. 30.
d. 35. - answer>>A
According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the
negative implications of conflict of interest is to:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual
lists of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - answer>>D
Revenue cycle billing management typically includes what broad activities?
a. Billing and collections for inpatient, outpatient and surgical services.
,b. Claims processing, denial management and claims payment.
c. Processing accounts payables, denial management and billing for outpatient services.
d. Activities before services are rendered, activities that occur simultaneously with the services and
activities after services are rendered. - answer>>D
Who gives final approval of the medical staff bylaws?
a. The board.
b. The medical staff.
c. The board executive committee.
d. The medical staff executive committee. - answer>>A
Which of the following courts is often given jurisdiction to hear cases involving such matters as surgery
for an incompetent person or the involuntary commitment of a mentally ill person?
a. Family court.
b. Juvenile court.
c. Appellate court.
d. Probate court. - answer>>D
To guard against the loss of assets, an administrator should do which of the following?
a. Encourage off-site storage of equipment.
b. Allow service directors to determine the frequency of asset inventories.
c. Ensure that billing and collections are handled by the same team.
d. Implement detailed procedures, risk control and annual outside audits. - answer>>D
A food service director is assigned responsibility for environmental services. This is an Example of:
, a. Redundant management.
b. Matrix management.
c. Oversight management.
d. Service line management. - answer>>B
Which of the following management styles allows the highest subordinate freedom and lowest personal
authority?
a. Autocratic.
b. Participative.
c. Democratic.
d. Laissez-faire. - answer>>D
Under the regulations of the IRS, a tax exempt entity:
a. Must provide a private benefit to those institutions operating or affiliated with the entity.
b. Must limit the benefit to any private individual.
c. Must provide a public benefit to the community.
d. Can minimize penalties if it limits private benefits to less than 50%. - answer>>C
Network of hospitals, physicians and other healthcare providers that provide services for a negotiated
fee are called:
a. HMOs.
b. PSOs.
c. PPOs.
d. MSOs. - answer>>C
SOLUTION A+ GRADE
An analysis of proposed capital investment typically includes all of the following except:
a. Cost of capital
b. Cash flow projections
c. Liquidity ratio.
d. Risk assessment. - answer>>C
What in the revenue cycle process is a major impediment to prompt payment?
a. Payment receipt and posting.
b. Claims submission.
c. Poor financial counseling.
d. Claim denial. - answer>>D
When evaluating capital budgeting performance, what is the best indicator of operating leverage?
a. Debt to capitalization ratio.
b. Expense ratio.
c. Average age of plant.
d. Depreciation ratio. - answer>>B
The principles of quality improvement require that healthcare executives change their management
philosophy from
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
,c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - answer>>A
The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions and
determines that her institution has no competitive advantage. Which strategy should she pursue?
a. Target many market segments based on demographics.
b. Prioritize market segments and heavily promote to key groups. c. Advertise broadly to increase
general awareness.
d. Recruit more physicians to admit to the institution. - answer>>B
If the average daily census on an inpatient medical surgical unit is 19, and the productive hours per
patient day target is 7.2, and the productive percentage calculation is 8.5, how many fulltime
equivalents (FTEs) should be budgeted for the productive core staffing?
a. 24.
b. 26.
c. 30.
d. 35. - answer>>A
According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the
negative implications of conflict of interest is to:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual
lists of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - answer>>D
Revenue cycle billing management typically includes what broad activities?
a. Billing and collections for inpatient, outpatient and surgical services.
,b. Claims processing, denial management and claims payment.
c. Processing accounts payables, denial management and billing for outpatient services.
d. Activities before services are rendered, activities that occur simultaneously with the services and
activities after services are rendered. - answer>>D
Who gives final approval of the medical staff bylaws?
a. The board.
b. The medical staff.
c. The board executive committee.
d. The medical staff executive committee. - answer>>A
Which of the following courts is often given jurisdiction to hear cases involving such matters as surgery
for an incompetent person or the involuntary commitment of a mentally ill person?
a. Family court.
b. Juvenile court.
c. Appellate court.
d. Probate court. - answer>>D
To guard against the loss of assets, an administrator should do which of the following?
a. Encourage off-site storage of equipment.
b. Allow service directors to determine the frequency of asset inventories.
c. Ensure that billing and collections are handled by the same team.
d. Implement detailed procedures, risk control and annual outside audits. - answer>>D
A food service director is assigned responsibility for environmental services. This is an Example of:
, a. Redundant management.
b. Matrix management.
c. Oversight management.
d. Service line management. - answer>>B
Which of the following management styles allows the highest subordinate freedom and lowest personal
authority?
a. Autocratic.
b. Participative.
c. Democratic.
d. Laissez-faire. - answer>>D
Under the regulations of the IRS, a tax exempt entity:
a. Must provide a private benefit to those institutions operating or affiliated with the entity.
b. Must limit the benefit to any private individual.
c. Must provide a public benefit to the community.
d. Can minimize penalties if it limits private benefits to less than 50%. - answer>>C
Network of hospitals, physicians and other healthcare providers that provide services for a negotiated
fee are called:
a. HMOs.
b. PSOs.
c. PPOs.
d. MSOs. - answer>>C
