ACHE FACHE BOG

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 Econ...

Acid-test ratio The ratio of total assets to total liability Market Potential The volume that would be realized if each prospective consumer were to purchase a specific amount of a particular service during a defined future time frame. General Ledger Entries assign capital costs through depreciation of long-term assets, adjust inventory values, and allocate expenses of central services. Net Revenue Income actually received, as opposed to that initially posted; equal to g...

Health Insurance Portability & Accountability Act (HIPAA) is a Federal Law designed to facilitate the electronic exchange of information in health care. Which of the following does not pertain to this law? a) Privacy protection components of the law limit non-consensual use as a release or private health information b) Patients must receive notice of privacy rights c) Restrictions on access to and use of information is required d) Criminal and civil sanctions do not exist for improper use an...

ACHE - BOG Exam - Additional Sample Questions and answers

According to the Code of Ethics, one way executives can avoid or minimize negative implications of conflict of interest is: a) develop a PR plan to address conflict of interest scenarios b) not participate in specific decisions where conflict may exist c) ensure members submit annual holdings for inspection d) make the conflict known to those in superior positions D The principles of quality improvement require that executives change their management philosophy from: A) finding faul...

Definition and Rule of Inurement - Diversion of funds to persons in governance or mgt as a result of their position of trust - Directors, officers, trustees are prohibited from engaging in business that allows them to derive financial advantage from their governing board role (conflict of interest) What is a best practice (as far as how soon in days) in receiving payments from date of invoice? Less than 50 days Definition of working capital Amount of cash required to support op...

CEO Compensation should be based on: a. the compensation arrangement with prior CEO b. executive compensation in local corporations with similar gross revenues c. present day salary plus cost-of living adjustment d. what the institution would have to pay for a similarly prepared person if that person were employed elsewhere d. what the institution would have to pay for a similarly prepared person if that person were employed elsewhere An essential function of the governing board is t...

For the routine service cost center, an increase in the number of patient days over the budgeted number of patient days will result in: 1. A higher average cost per patient day. 2. A lower average cost per patient day. 3. An increase in the budgeted fixed costs for the routine service cost center. 4.No change in the average cost per patient day. 2. Which of the following balance sheet items would differ between a for-profit and a not-for-profit healthcare organization? 1.Retaine...

a. Monitoring budget performance 1) The finance committee of the Board is responsible for: a. Monitoring budget performance b. Awarding CEO increases and bonuses c. Acting on behalf of the Board in their absence d. Permitting joint ventures with other corporations b. Services 2) Which of the following should be included in an organization's mission statement? a. Ethics b. Services c. Strategies d. Facilities c. A board member refrains from conflicts of interest 3) The d...