FACHE BOG Exam - all topics question
with answers
Weighted average cost of capital model (WACC) - -Method to measure the costs of
various service of capital and the impact of the capital structure
-Weighted average cost of capital model (WACC) - -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 - -Economic evaluation techniques & accounting evaluation
tecchniques
-Net present value & internal rate of return - -Economic evaluation techniques
(adjusted for he time value of money)
-Accounting rate of return & pay back - -Accounting evaluation techniques (not
adjusted for the time value of money)
-Net working capital - -On the balance sheet, what does the difference between
total current assets and total current liabilities indicate?
-Infrastructure - -Budgets for new capital expenditures include requests for...
-Capital asset pricing model (CAPM) - -An equilibrium model that describes the
relationship between market risk and required rate of return
-Full-time equivalents per adjusted averaged daily census - -The most common
operating indicator used to measure overall staff productivity
-The following are considered part of the labor budget - -Staff salaries, hourly
wages, employee benefits
-Contract staff expenses - -Are NOT considered part of the labor budget
-claim denial - -Claim denial is a major impediment to prompt payment in the
revenue cycle process
-FTE - -20.8
-Expense ratio - -Best indicator of operating leverage when evaluating capital
budgeting performance
-Analysis of proposed capital investment includes - -Cost of capital, cash flow
projections, rush assessment
, -Revenue cycle billing management typically includes - -Activities before services
are rendered, activities that occur simultaneously with the services and activities
after services are rendered.
-Drug prescriptions - -An example of direct costs
-Demand, cost, and output/productivity - -3 basic categories of quantitative
performance measures used in conventional accounting systems
-Under a capitated payment system... - -The risk sharing arrangements involve
hospitals and insurers
-Net Present Value (NPV) - -A profitability measure that uses discounted cash flow
-Opportunity costs - -Must be included when determining a capital project's
incremental cash flow
-Generally Accepted Accounting Principles (GAAP) - -Ensures that financial
information that is reported to outsiders is consistent across businesses and
presented in a manner that facilitated interpretation and judgements
-Internal rate of return measures - -Discount rate at which net present value is zero
-Statement of cash flows is organized in 3 sections: - -Cash from operations, cash
from investing activities and cash flow from financing activities
-Financial ratio analysis - -Combines data from a balance sheet and an income
statement to create a single number that facilitates easy interpretation
-Balance sheet - -Reviewed by CEO when s/he wants a snapshot of the financial
conditions of the organization
-Where should charity care be shown in a financial statement? - -In the notes to the
financial statements
-Best way to assign costs in responsibility management - -To assign costs to the
department manager who is responsible for making decisions about those costs
-Balance sheet - -A financial statement that is updated daily to reflect changes in
assets or composition of financing
-Controlling the costs of accounts receivable is heavily affected by - -The time or
length of the payment cycle
-Increased productivity - -Occurs when a reduction occurs in the ratio of hours
worked to the number of units of service rendered
-Price-level depreciation - -Depreciation method that best recognizes changes in
the general purchasing power of the dollar and/or changes in the replacement cost
of specific assets
with answers
Weighted average cost of capital model (WACC) - -Method to measure the costs of
various service of capital and the impact of the capital structure
-Weighted average cost of capital model (WACC) - -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 - -Economic evaluation techniques & accounting evaluation
tecchniques
-Net present value & internal rate of return - -Economic evaluation techniques
(adjusted for he time value of money)
-Accounting rate of return & pay back - -Accounting evaluation techniques (not
adjusted for the time value of money)
-Net working capital - -On the balance sheet, what does the difference between
total current assets and total current liabilities indicate?
-Infrastructure - -Budgets for new capital expenditures include requests for...
-Capital asset pricing model (CAPM) - -An equilibrium model that describes the
relationship between market risk and required rate of return
-Full-time equivalents per adjusted averaged daily census - -The most common
operating indicator used to measure overall staff productivity
-The following are considered part of the labor budget - -Staff salaries, hourly
wages, employee benefits
-Contract staff expenses - -Are NOT considered part of the labor budget
-claim denial - -Claim denial is a major impediment to prompt payment in the
revenue cycle process
-FTE - -20.8
-Expense ratio - -Best indicator of operating leverage when evaluating capital
budgeting performance
-Analysis of proposed capital investment includes - -Cost of capital, cash flow
projections, rush assessment
, -Revenue cycle billing management typically includes - -Activities before services
are rendered, activities that occur simultaneously with the services and activities
after services are rendered.
-Drug prescriptions - -An example of direct costs
-Demand, cost, and output/productivity - -3 basic categories of quantitative
performance measures used in conventional accounting systems
-Under a capitated payment system... - -The risk sharing arrangements involve
hospitals and insurers
-Net Present Value (NPV) - -A profitability measure that uses discounted cash flow
-Opportunity costs - -Must be included when determining a capital project's
incremental cash flow
-Generally Accepted Accounting Principles (GAAP) - -Ensures that financial
information that is reported to outsiders is consistent across businesses and
presented in a manner that facilitated interpretation and judgements
-Internal rate of return measures - -Discount rate at which net present value is zero
-Statement of cash flows is organized in 3 sections: - -Cash from operations, cash
from investing activities and cash flow from financing activities
-Financial ratio analysis - -Combines data from a balance sheet and an income
statement to create a single number that facilitates easy interpretation
-Balance sheet - -Reviewed by CEO when s/he wants a snapshot of the financial
conditions of the organization
-Where should charity care be shown in a financial statement? - -In the notes to the
financial statements
-Best way to assign costs in responsibility management - -To assign costs to the
department manager who is responsible for making decisions about those costs
-Balance sheet - -A financial statement that is updated daily to reflect changes in
assets or composition of financing
-Controlling the costs of accounts receivable is heavily affected by - -The time or
length of the payment cycle
-Increased productivity - -Occurs when a reduction occurs in the ratio of hours
worked to the number of units of service rendered
-Price-level depreciation - -Depreciation method that best recognizes changes in
the general purchasing power of the dollar and/or changes in the replacement cost
of specific assets
