ACTUAL Exam Questions and CORRECT
Answers
Weighted average cost of capital model (WACC) - CORRECT ANSWER - Method to
measure the costs of various service of capital and the impact of the capital structure
Weighted average cost of capital model (WACC) - CORRECT ANSWER - The relative
amount of debt and equity in the capital structure and the cost of WACC source in the
marketplace are used to determine weighted costs
Evaluation techniques - CORRECT ANSWER - Economic evaluation techniques &
accounting evaluation tecchniques
Net present value & internal rate of return - CORRECT ANSWER - Economic evaluation
techniques (adjusted for he time value of money)
Accounting rate of return & pay back - CORRECT ANSWER - Accounting evaluation
techniques (not adjusted for the time value of money)
Net working capital - CORRECT ANSWER - On the balance sheet, what does the
difference between total current assets and total current liabilities indicate?
Infrastructure - CORRECT ANSWER - Budgets for new capital expenditures include
requests for...
Capital asset pricing model (CAPM) - CORRECT ANSWER - An equilibrium model that
describes the relationship between market risk and required rate of return
, Full-time equivalents per adjusted averaged daily census - CORRECT ANSWER - The
most common operating indicator used to measure overall staff productivity
The following are considered part of the labor budget - CORRECT ANSWER - Staff
salaries, hourly wages, employee benefits
Contract staff expenses - CORRECT ANSWER - Are NOT considered part of the labor
budget
claim denial - CORRECT ANSWER - Claim denial is a major impediment to prompt
payment in the revenue cycle process
FTE - CORRECT ANSWER - 20.8
Expense ratio - CORRECT ANSWER - Best indicator of operating leverage when
evaluating capital budgeting performance
Analysis of proposed capital investment includes - CORRECT ANSWER - Cost of capital,
cash flow projections, rush assessment
Revenue cycle billing management typically includes - CORRECT ANSWER - Activities
before services are rendered, activities that occur simultaneously with the services and activities
after services are rendered.
Drug prescriptions - CORRECT ANSWER - An example of direct costs
Demand, cost, and output/productivity - CORRECT ANSWER - 3 basic categories of
quantitative performance measures used in conventional accounting systems
Under a capitated payment system... - CORRECT ANSWER - The risk sharing
arrangements involve hospitals and insurers