FACHE BOG Exam - all topics with
Complete Solutions
Weighted average cost of capital model (WACC) - Correct Answers-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 Answers-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 Answers-Economic evaluation techniques & accounting
evaluation tecchniques
Net present value & internal rate of return - Correct Answers-Economic evaluation
techniques (adjusted for he time value of money)
Accounting rate of return & pay back - Correct Answers-Accounting evaluation
techniques (not adjusted for the time value of money)
Net working capital - Correct Answers-On the balance sheet, what does the difference
between total current assets and total current liabilities indicate?
Infrastructure - Correct Answers-Budgets for new capital expenditures include requests
for...
Capital asset pricing model (CAPM) - Correct Answers-An equilibrium model that
describes the relationship between market risk and required rate of return
Full-time equivalents per adjusted averaged daily census - Correct Answers-The most
common operating indicator used to measure overall staff productivity
The following are considered part of the labor budget - Correct Answers-Staff salaries,
hourly wages, employee benefits
Contract staff expenses - Correct Answers-Are NOT considered part of the labor budget
claim denial - Correct Answers-Claim denial is a major impediment to prompt payment
in the revenue cycle process
FTE - Correct Answers-20.8
, Expense ratio - Correct Answers-Best indicator of operating leverage when evaluating
capital budgeting performance
Analysis of proposed capital investment includes - Correct Answers-Cost of capital,
cash flow projections, rush assessment
Revenue cycle billing management typically includes - Correct Answers-Activities before
services are rendered, activities that occur simultaneously with the services and
activities after services are rendered.
Drug prescriptions - Correct Answers-An example of direct costs
Demand, cost, and output/productivity - Correct Answers-3 basic categories of
quantitative performance measures used in conventional accounting systems
Under a capitated payment system... - Correct Answers-The risk sharing arrangements
involve hospitals and insurers
Net Present Value (NPV) - Correct Answers-A profitability measure that uses
discounted cash flow
Opportunity costs - Correct Answers-Must be included when determining a capital
project's incremental cash flow
Generally Accepted Accounting Principles (GAAP) - Correct Answers-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 - Correct Answers-Discount rate at which net present
value is zero
Kickback - Correct Answers-Any inducement payment solicitation receipt offer or
payment in return for referrals or for recommending ordering leasing or purchasing a
service or item that may be at least partially paid for through a federal program
Fraud - Correct Answers-The intentional deception or misrepresentation that an
individual knows to be false or does not believe to be true...knowing that the deception
could result in an unauthorized benefit (requires intent)
Abuse - Correct Answers-Incidents or practices of providers that are inconsistent with
accepted sound medical practices, directly or indirectly resulting in unnecessary costs to
the government (can be an honest mistake)
Financial ratio analysis - Correct Answers-Combines data from a balance sheet and an
income statement to create a single number that facilitates easy interpretation
Complete Solutions
Weighted average cost of capital model (WACC) - Correct Answers-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 Answers-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 Answers-Economic evaluation techniques & accounting
evaluation tecchniques
Net present value & internal rate of return - Correct Answers-Economic evaluation
techniques (adjusted for he time value of money)
Accounting rate of return & pay back - Correct Answers-Accounting evaluation
techniques (not adjusted for the time value of money)
Net working capital - Correct Answers-On the balance sheet, what does the difference
between total current assets and total current liabilities indicate?
Infrastructure - Correct Answers-Budgets for new capital expenditures include requests
for...
Capital asset pricing model (CAPM) - Correct Answers-An equilibrium model that
describes the relationship between market risk and required rate of return
Full-time equivalents per adjusted averaged daily census - Correct Answers-The most
common operating indicator used to measure overall staff productivity
The following are considered part of the labor budget - Correct Answers-Staff salaries,
hourly wages, employee benefits
Contract staff expenses - Correct Answers-Are NOT considered part of the labor budget
claim denial - Correct Answers-Claim denial is a major impediment to prompt payment
in the revenue cycle process
FTE - Correct Answers-20.8
, Expense ratio - Correct Answers-Best indicator of operating leverage when evaluating
capital budgeting performance
Analysis of proposed capital investment includes - Correct Answers-Cost of capital,
cash flow projections, rush assessment
Revenue cycle billing management typically includes - Correct Answers-Activities before
services are rendered, activities that occur simultaneously with the services and
activities after services are rendered.
Drug prescriptions - Correct Answers-An example of direct costs
Demand, cost, and output/productivity - Correct Answers-3 basic categories of
quantitative performance measures used in conventional accounting systems
Under a capitated payment system... - Correct Answers-The risk sharing arrangements
involve hospitals and insurers
Net Present Value (NPV) - Correct Answers-A profitability measure that uses
discounted cash flow
Opportunity costs - Correct Answers-Must be included when determining a capital
project's incremental cash flow
Generally Accepted Accounting Principles (GAAP) - Correct Answers-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 - Correct Answers-Discount rate at which net present
value is zero
Kickback - Correct Answers-Any inducement payment solicitation receipt offer or
payment in return for referrals or for recommending ordering leasing or purchasing a
service or item that may be at least partially paid for through a federal program
Fraud - Correct Answers-The intentional deception or misrepresentation that an
individual knows to be false or does not believe to be true...knowing that the deception
could result in an unauthorized benefit (requires intent)
Abuse - Correct Answers-Incidents or practices of providers that are inconsistent with
accepted sound medical practices, directly or indirectly resulting in unnecessary costs to
the government (can be an honest mistake)
Financial ratio analysis - Correct Answers-Combines data from a balance sheet and an
income statement to create a single number that facilitates easy interpretation
