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FACHE BOG Exam Q&As 2024.

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FACHE BOG Exam Q&As 2024.

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  • May 30, 2024
  • 5
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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FACHE BOG Exam Q&As 2024
Weighted average cost of capital model (WACC) - ANS-Method to measure the costs of
various service of capital and the impact of the capital structure

Weighted average cost of capital model (WACC) - ANS-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 - ANS-Economic evaluation techniques & accounting evaluation
tecchniques

Net present value & internal rate of return - ANS-Economic evaluation techniques
(adjusted for he time value of money)

Accounting rate of return & pay back - ANS-Accounting evaluation techniques (not
adjusted for the time value of money)

Net working capital - ANS-On the balance sheet, what does the difference between total
current assets and total current liabilities indicate?

Infrastructure - ANS-Budgets for new capital expenditures include requests for...

Capital asset pricing model (CAPM) - ANS-An equilibrium model that describes the
relationship between market risk and required rate of return

Full-time equivalents per adjusted averaged daily census - ANS-The most common
operating indicator used to measure overall staff productivity

The following are considered part of the labor budget - ANS-Staff salaries, hourly
wages, employee benefits

Contract staff expenses - ANS-Are NOT considered part of the labor budget

claim denial - ANS-Claim denial is a major impediment to prompt payment in the
revenue cycle process

FTE - ANS-20.8

, Expense ratio - ANS-Best indicator of operating leverage when evaluating
capital budgeting performance

Analysis of proposed capital investment includes - ANS-Cost of capital, cash flow
projections, rush assessment

Revenue cycle billing management typically includes - ANS-Activities before services
are rendered, activities that occur simultaneously with the services and activities after
services are rendered.

Drug prescriptions - ANS-An example of direct costs

Demand, cost, and output/productivity - ANS-3 basic categories of quantitative
performance measures used in conventional accounting systems

Under a capitated payment system... - ANS-The risk sharing arrangements involve
hospitals and insurers

Net Present Value (NPV) - ANS-A profitability measure that uses discounted cash flow

Opportunity costs - ANS-Must be included when determining a capital project's
incremental cash flow

Generally Accepted Accounting Principles (GAAP) - ANS-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 - ANS-Discount rate at which net present value is zero

Statement of cash flows is organized in 3 sections: - ANS-Cash from operations, cash
from investing activities and cash flow from financing activities

Financial ratio analysis - ANS-Combines data from a balance sheet and an income
statement to create a single number that facilitates easy interpretation

Balance sheet - ANS-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? - ANS-In the notes to the

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