ACHE BOG PRACTICE EXAM / ACTUAL EXAM
QUESTIONS AND 100% CORRECT ANSWERS
2025/2026 (BRAND NEW)!!!
According to the ACHE Code of Ethics, what action can the Ethics
Committee take against an affiliate after a grievance procedure has
been initiated?
a. Fine the affiliate.
b. Report the violation to the affiliate's employer.
c. Issue a written reprimand to the affiliate.
d. Recommend expulsion of the affiliate. - ANSWER -D
ACHE's Ethical Policy Statement on Ethical Issues Related to
Downsizing recommends that healthcare executives should consider
providing which of the following when downsizing?
a. Financial aid.
b. Child care.
c. Family counseling
d. Out-placement assistance. - ANSWER -D
According to the ACHE's Ethical Policy Statement in Creating an
Ethical Environment for Employees, the organization should:
a. Ensure maximum utilization of an employee's skills and abilities.
b. Create a working environment that provides freedom from
coercion.
c. Develop a committee that addresses employee diversity and
compliance.
d. Provide sensitivity training to new employees at orientation. -
ANSWER -B
What are the three basic categories of quantitative performance
measures used in conventional accounting systems?
pg. 1
,a. Market share, customer satisfaction, and quality.
b. Demand, sales, and cost.
c. Demand, cost, and output/productivity.
d. Services rendered, market share, and access. - ANSWER -C
Under a capitated payment system, the risk sharing arrangements
involve which parties?
a. Insurers and patients.
b. Physicians and purchasers.
c. Hospitals and patients.
d. Hospitals and insurers. - ANSWER -D
Which concept of profitability analysis listed below is correct?
a. Internal Rate of Return (IRR) measures a project's percentage of
cash flow.
b. Net Present Value (NPV) is a profitability measure that uses
discounted cash flow.
c. Modified Internal Rate of Return (MIRR) is a less accurate measure
than a project's actual rate of return.
d. Profitability Return Rate (PRR) provides the most accurate
measure. - ANSWER -B
Which of the following must be included when determining a capital
project's incremental cash flow?
a. Opportunity costs.
b. Cash inflows.
c. Inflation.
d. Internal rate of return. - ANSWER -A
The critical link that brings patients and providers together is:
a. Marketing.
pg. 2
,b. Advertising.
c. Strategic planning.
d. External analysis. - ANSWER -A
The concept of demand management consists of:
a. Concurrent review.
b. Risk assessment.
c. Disease management.
d. Chart review. - ANSWER -A
The primary purpose of generally accepted accounting principles
(GAA) in healthcare settings is to:
a. Provide regulators with increased access to high quality financial
statements of organizations within their jurisdiction.
b. Ensure that financial information that is reported to outsiders is
consistent across businesses and presented in a manner that facilitates
interpretation and judgments.
c. Allow interested individuals a rapid means of collecting financial
data about hospitals and managed care organizations.
d. Facilitate the training of accountants and other finance
professionals in the fundamentals of hospital and health services
accounting. - ANSWER -B
The internal rate of return measures the:
a. Number of years to recover the original investment.
b. Discounted future cash flows.
c. Discount rate at which the net present value is zero.
d. Discount rate that the firm uses in computing the cost of capital. -
ANSWER -C
pg. 3
, The Statement of Cash Flows is typically organized into three
sections: Cash Flow From Operations; Cash Flow From Investing
Activities; and Cash Flow From:
a. Bad Debt Recovery.
b. Regulatory Recapture.
c. Financing Activities.
d. Donations & Foundation Support. - ANSWER -C
Which of the following combines data from a balance sheet and an
income statement to create a single number that facilitates easy
interpretation?
a. Financial ratio analysis.
b. Acid test ratio.
c. Operating margin ratio.
d. Cash flow analysis. - ANSWER -A
In a healthcare organization, who has ultimate fiduciary
responsibility?
a. Chief financial officer
b. Board of directors.
c. Medical staff officers.
d. Senior management. - ANSWER -B
Medicare DRG payment is highly dependent upon a hospital's case
mix index. This index represents the average relative weight for all
Medicare patients treated in a:
a. Specific nursing unit or specialty area.
b. Specific period.
c. Common geographic market.
d. Specific facility. - ANSWER -B
pg. 4
QUESTIONS AND 100% CORRECT ANSWERS
2025/2026 (BRAND NEW)!!!
According to the ACHE Code of Ethics, what action can the Ethics
Committee take against an affiliate after a grievance procedure has
been initiated?
a. Fine the affiliate.
b. Report the violation to the affiliate's employer.
c. Issue a written reprimand to the affiliate.
d. Recommend expulsion of the affiliate. - ANSWER -D
ACHE's Ethical Policy Statement on Ethical Issues Related to
Downsizing recommends that healthcare executives should consider
providing which of the following when downsizing?
a. Financial aid.
b. Child care.
c. Family counseling
d. Out-placement assistance. - ANSWER -D
According to the ACHE's Ethical Policy Statement in Creating an
Ethical Environment for Employees, the organization should:
a. Ensure maximum utilization of an employee's skills and abilities.
b. Create a working environment that provides freedom from
coercion.
c. Develop a committee that addresses employee diversity and
compliance.
d. Provide sensitivity training to new employees at orientation. -
ANSWER -B
What are the three basic categories of quantitative performance
measures used in conventional accounting systems?
pg. 1
,a. Market share, customer satisfaction, and quality.
b. Demand, sales, and cost.
c. Demand, cost, and output/productivity.
d. Services rendered, market share, and access. - ANSWER -C
Under a capitated payment system, the risk sharing arrangements
involve which parties?
a. Insurers and patients.
b. Physicians and purchasers.
c. Hospitals and patients.
d. Hospitals and insurers. - ANSWER -D
Which concept of profitability analysis listed below is correct?
a. Internal Rate of Return (IRR) measures a project's percentage of
cash flow.
b. Net Present Value (NPV) is a profitability measure that uses
discounted cash flow.
c. Modified Internal Rate of Return (MIRR) is a less accurate measure
than a project's actual rate of return.
d. Profitability Return Rate (PRR) provides the most accurate
measure. - ANSWER -B
Which of the following must be included when determining a capital
project's incremental cash flow?
a. Opportunity costs.
b. Cash inflows.
c. Inflation.
d. Internal rate of return. - ANSWER -A
The critical link that brings patients and providers together is:
a. Marketing.
pg. 2
,b. Advertising.
c. Strategic planning.
d. External analysis. - ANSWER -A
The concept of demand management consists of:
a. Concurrent review.
b. Risk assessment.
c. Disease management.
d. Chart review. - ANSWER -A
The primary purpose of generally accepted accounting principles
(GAA) in healthcare settings is to:
a. Provide regulators with increased access to high quality financial
statements of organizations within their jurisdiction.
b. Ensure that financial information that is reported to outsiders is
consistent across businesses and presented in a manner that facilitates
interpretation and judgments.
c. Allow interested individuals a rapid means of collecting financial
data about hospitals and managed care organizations.
d. Facilitate the training of accountants and other finance
professionals in the fundamentals of hospital and health services
accounting. - ANSWER -B
The internal rate of return measures the:
a. Number of years to recover the original investment.
b. Discounted future cash flows.
c. Discount rate at which the net present value is zero.
d. Discount rate that the firm uses in computing the cost of capital. -
ANSWER -C
pg. 3
, The Statement of Cash Flows is typically organized into three
sections: Cash Flow From Operations; Cash Flow From Investing
Activities; and Cash Flow From:
a. Bad Debt Recovery.
b. Regulatory Recapture.
c. Financing Activities.
d. Donations & Foundation Support. - ANSWER -C
Which of the following combines data from a balance sheet and an
income statement to create a single number that facilitates easy
interpretation?
a. Financial ratio analysis.
b. Acid test ratio.
c. Operating margin ratio.
d. Cash flow analysis. - ANSWER -A
In a healthcare organization, who has ultimate fiduciary
responsibility?
a. Chief financial officer
b. Board of directors.
c. Medical staff officers.
d. Senior management. - ANSWER -B
Medicare DRG payment is highly dependent upon a hospital's case
mix index. This index represents the average relative weight for all
Medicare patients treated in a:
a. Specific nursing unit or specialty area.
b. Specific period.
c. Common geographic market.
d. Specific facility. - ANSWER -B
pg. 4
