1|Page
BOG FACHE Exam 2025 – Board of Governors Fellow of
the American College of Healthcare Executives Certification
Study Guide & Practice Test (Latest Edition)
Ace your BOG FACHE Exam 2025 with this comprehensive study guide and practice test
based on the latest American College of Healthcare Executives (ACHE) Board of Governors
Certification requirements. Covers healthcare management, finance, ethics, operations, and
leadership competencies. Ideal for healthcare administrators, executives, and professionals
pursuing FACHE certification to advance their leadership careers in healthcare management.
BOG FACHE exam,
FACHE certification exam,
ACHE Board of Governors exam,
BOG FACHE study guide 2025,
In a unionized organization, what is the most effective contract dispute resolution finalization
alternative?
a. Mediation.
b. Corporate Campaigns.
c. Arbitration.
d. Strike. - ANSWER-c. Arbitration.
What does a liquidity ratio measure?
a. A firm's ability to meet its current obligations in a timely manner.
b. Size of dividends to be paid to shareholders.
,2|Page
c. The percent of total funds provided by creditors.
d. Days in accounts receivable. - ANSWER-a. A firm's ability to meet its current obligations in a timely
manner.
The real value of financial statements lies in the fact they can be used to help:
a. Predict the firm's future financial condition.
b. Compute total margin versus periodic gain.
c. Relate the industry average to net profit/loss over time.
d. Understand that a large portion of a hospitals net income may come from nonoperating gains. -
ANSWER-a. Predict the firm's future financial condition.
Facing struggles such as declining profit margins, nonprofit healthcare organizations have become more
dependent on what source for financing capital needs?
a. Philanthropy.
b. Bond financing.
c. Capital leases.
d. Operational leases. - ANSWER-a. Philanthropy.
Medicare Conditions of Participation for hospitals require that a
prescribing practitioner authenticate a verbal order within ________, if not defined by the state.
a. 24 hours.
b. 48 hours.
c. 7 days.
d. 30 days. - ANSWER-b. 48 hours.
Cost accounting is an important tool which enables the CFO to:
a. Meet Joint Commission fiscal requirements.
b. Ensure supplies are competitively purchased.
c. Determine the actual cost of providing patient care.
d. Improve revenue cycle returns. - ANSWER-c. Determine the actual cost of providing patient care.
,3|Page
What is true about the relationship between acute care hospitals and longterm care organization?
a. Hospitals and patients frequently have difficulty arranging for nursing home care services.
b. Hospitals generally do not want to refer patients to nursing homes since part of the patient care
revenue must be shared.
c. Nursing homes generally do not want to refer patients to hospitals since this interferes with state or
federal length-of stay requirements.
d. Nursing homes are generally thought to be superior to hospitals at chronic disease management. -
ANSWER-a. Hospitals and patients frequently have difficulty arranging for nursing home care services.
The first step in any strategic management scenario planning is to:
a. Develop "what if" scenarios
b. Gather information from as many sources as possible.
c. Develop courses of action that fit within future organizational resources.
d. Conduct a make vs. buy analysis. - ANSWER-b. Gather information from as many sources as possible.
Which of the following is the least serious limitation to decision analysis?
a. Oversimplifying the problem.
b. Inadequate data.
c. The decision maker's values.
d. The statistical model. - ANSWER-d. The statistical model.
You work for a county organization that has decided to issue bonds to fund a new building. What type of
bond would be sold on behalf of your organization?
a. Mortgage bond.
b. Corporate bond.
c. Capital bond.
d. Municipal bond. - ANSWER-d. Municipal bond.
, 4|Page
On a balance sheet, what does the difference between total current assets and total current liabilities
indicate?
a. Cash on hand.
b. Net working capital.
c. Liquid assets.
d. Equity. - ANSWER-b. Net working capital.
How should supervisors behave toward informal leaders in the
organization?
a. Maintain a positive attitude toward informal leaders.
b. Ensure informal leaders remain at a moderately low status within the work group.
c. Grant informal leaders occasional favors.
d. Pass information on to informal leaders before giving it to formal leaders. - ANSWER-a. Maintain a
positive attitude toward informal leaders.
Budgets for new capital expenditures include requests for:
a. Infrastructure.
b. Wage adjustments.
c. New employee insurance plans.
d. New gain share agreement with staff physicians. - ANSWER-a. Infrastructure.
The Capital Asset Pricing Model (CAPM), an equilibrium model, describes the relationship between
which of the following?
a. Market risk and required rate of return.
b. Expected rate of return and actual rate of return.
c. Price and market risk.
d. Expected rate of return and required rate of return. - ANSWER-a. Market risk and required rate of
return.
What is the most common operating indicator used to measure overall staff productivity?
BOG FACHE Exam 2025 – Board of Governors Fellow of
the American College of Healthcare Executives Certification
Study Guide & Practice Test (Latest Edition)
Ace your BOG FACHE Exam 2025 with this comprehensive study guide and practice test
based on the latest American College of Healthcare Executives (ACHE) Board of Governors
Certification requirements. Covers healthcare management, finance, ethics, operations, and
leadership competencies. Ideal for healthcare administrators, executives, and professionals
pursuing FACHE certification to advance their leadership careers in healthcare management.
BOG FACHE exam,
FACHE certification exam,
ACHE Board of Governors exam,
BOG FACHE study guide 2025,
In a unionized organization, what is the most effective contract dispute resolution finalization
alternative?
a. Mediation.
b. Corporate Campaigns.
c. Arbitration.
d. Strike. - ANSWER-c. Arbitration.
What does a liquidity ratio measure?
a. A firm's ability to meet its current obligations in a timely manner.
b. Size of dividends to be paid to shareholders.
,2|Page
c. The percent of total funds provided by creditors.
d. Days in accounts receivable. - ANSWER-a. A firm's ability to meet its current obligations in a timely
manner.
The real value of financial statements lies in the fact they can be used to help:
a. Predict the firm's future financial condition.
b. Compute total margin versus periodic gain.
c. Relate the industry average to net profit/loss over time.
d. Understand that a large portion of a hospitals net income may come from nonoperating gains. -
ANSWER-a. Predict the firm's future financial condition.
Facing struggles such as declining profit margins, nonprofit healthcare organizations have become more
dependent on what source for financing capital needs?
a. Philanthropy.
b. Bond financing.
c. Capital leases.
d. Operational leases. - ANSWER-a. Philanthropy.
Medicare Conditions of Participation for hospitals require that a
prescribing practitioner authenticate a verbal order within ________, if not defined by the state.
a. 24 hours.
b. 48 hours.
c. 7 days.
d. 30 days. - ANSWER-b. 48 hours.
Cost accounting is an important tool which enables the CFO to:
a. Meet Joint Commission fiscal requirements.
b. Ensure supplies are competitively purchased.
c. Determine the actual cost of providing patient care.
d. Improve revenue cycle returns. - ANSWER-c. Determine the actual cost of providing patient care.
,3|Page
What is true about the relationship between acute care hospitals and longterm care organization?
a. Hospitals and patients frequently have difficulty arranging for nursing home care services.
b. Hospitals generally do not want to refer patients to nursing homes since part of the patient care
revenue must be shared.
c. Nursing homes generally do not want to refer patients to hospitals since this interferes with state or
federal length-of stay requirements.
d. Nursing homes are generally thought to be superior to hospitals at chronic disease management. -
ANSWER-a. Hospitals and patients frequently have difficulty arranging for nursing home care services.
The first step in any strategic management scenario planning is to:
a. Develop "what if" scenarios
b. Gather information from as many sources as possible.
c. Develop courses of action that fit within future organizational resources.
d. Conduct a make vs. buy analysis. - ANSWER-b. Gather information from as many sources as possible.
Which of the following is the least serious limitation to decision analysis?
a. Oversimplifying the problem.
b. Inadequate data.
c. The decision maker's values.
d. The statistical model. - ANSWER-d. The statistical model.
You work for a county organization that has decided to issue bonds to fund a new building. What type of
bond would be sold on behalf of your organization?
a. Mortgage bond.
b. Corporate bond.
c. Capital bond.
d. Municipal bond. - ANSWER-d. Municipal bond.
, 4|Page
On a balance sheet, what does the difference between total current assets and total current liabilities
indicate?
a. Cash on hand.
b. Net working capital.
c. Liquid assets.
d. Equity. - ANSWER-b. Net working capital.
How should supervisors behave toward informal leaders in the
organization?
a. Maintain a positive attitude toward informal leaders.
b. Ensure informal leaders remain at a moderately low status within the work group.
c. Grant informal leaders occasional favors.
d. Pass information on to informal leaders before giving it to formal leaders. - ANSWER-a. Maintain a
positive attitude toward informal leaders.
Budgets for new capital expenditures include requests for:
a. Infrastructure.
b. Wage adjustments.
c. New employee insurance plans.
d. New gain share agreement with staff physicians. - ANSWER-a. Infrastructure.
The Capital Asset Pricing Model (CAPM), an equilibrium model, describes the relationship between
which of the following?
a. Market risk and required rate of return.
b. Expected rate of return and actual rate of return.
c. Price and market risk.
d. Expected rate of return and required rate of return. - ANSWER-a. Market risk and required rate of
return.
What is the most common operating indicator used to measure overall staff productivity?
