FACHE PRACTICE TEST FINAL PAPER 2026
114 QUESTIONS COMPLETE ANSWERS
ACCURATE
⩥ Cost accounting is an important tool which enables the CFO to:
a. Meet Joint Commission fiscal requirements.
b. Ensure supplies are competitively purchased.
c. Determine the actual cost of providing patient care.
d. Improve revenue cycle returns. Answer: c. Determine the actual cost
of providing patient care.
⩥ What is true about the relationship between acute care hospitals and
longterm care organization?
a. Hospitals and patients frequently have difficulty arranging for nursing
home care services.
b. Hospitals generally do not want to refer patients to nursing homes
since part of the patient care revenue must be shared.
c. Nursing homes generally do not want to refer patients to hospitals
since this interferes with state or federal length-of stay requirements.
d. Nursing homes are generally thought to be superior to hospitals at
chronic disease management. Answer: a. Hospitals and patients
frequently have difficulty arranging for nursing home care services.
,⩥ The first step in any strategic management scenario planning is to:
a. Develop "what if" scenarios
b. Gather information from as many sources as possible.
c. Develop courses of action that fit within future organizational
resources.
d. Conduct a make vs. buy analysis. Answer: b. Gather information from
as many sources as possible.
⩥ Which of the following is the least serious limitation to decision
analysis?
a. Oversimplifying the problem.
b. Inadequate data.
c. The decision maker's values.
d. The statistical model. Answer: d. The statistical model.
⩥ In a unionized organization, what is the most effective contract
dispute resolution finalization alternative?
a. Mediation.
b. Corporate Campaigns.
c. Arbitration.
d. Strike. Answer: c. Arbitration.
⩥ What does a liquidity ratio measure?
,a. A firm's ability to meet its current obligations in a timely manner.
b. Size of dividends to be paid to shareholders.
c. The percent of total funds provided by creditors.
d. Days in accounts receivable. Answer: a. A firm's ability to meet its
current obligations in a timely manner.
⩥ The real value of financial statements lies in the fact they can be used
to help:
a. Predict the firm's future financial condition.
b. Compute total margin versus periodic gain.
c. Relate the industry average to net profit/loss over time.
d. Understand that a large portion of a hospitals net income may come
from nonoperating gains. Answer: a. Predict the firm's future financial
condition.
⩥ Facing struggles such as declining profit margins, nonprofit healthcare
organizations have become more dependent on what source for
financing capital needs?
a. Philanthropy.
b. Bond financing.
c. Capital leases.
d. Operational leases. Answer: a. Philanthropy.
, ⩥ You work for a county organization that has decided to issue bonds to
fund a new building. What type of bond would be sold on behalf of your
organization?
a. Mortgage bond.
b. Corporate bond.
c. Capital bond.
d. Municipal bond. Answer: d. Municipal bond.
⩥ On a balance sheet, what does the difference between total current
assets and total current liabilities indicate?
a. Cash on hand.
b. Net working capital.
c. Liquid assets.
d. Equity. Answer: b. Net working capital.
⩥ How should supervisors behave toward informal leaders in the
organization?
a. Maintain a positive attitude toward informal leaders.
b. Ensure informal leaders remain at a moderately low status within the
work group.
c. Grant informal leaders occasional favors.
d. Pass information on to informal leaders before giving it to formal
leaders. Answer: a. Maintain a positive attitude toward informal leaders.
114 QUESTIONS COMPLETE ANSWERS
ACCURATE
⩥ Cost accounting is an important tool which enables the CFO to:
a. Meet Joint Commission fiscal requirements.
b. Ensure supplies are competitively purchased.
c. Determine the actual cost of providing patient care.
d. Improve revenue cycle returns. Answer: c. Determine the actual cost
of providing patient care.
⩥ What is true about the relationship between acute care hospitals and
longterm care organization?
a. Hospitals and patients frequently have difficulty arranging for nursing
home care services.
b. Hospitals generally do not want to refer patients to nursing homes
since part of the patient care revenue must be shared.
c. Nursing homes generally do not want to refer patients to hospitals
since this interferes with state or federal length-of stay requirements.
d. Nursing homes are generally thought to be superior to hospitals at
chronic disease management. Answer: a. Hospitals and patients
frequently have difficulty arranging for nursing home care services.
,⩥ The first step in any strategic management scenario planning is to:
a. Develop "what if" scenarios
b. Gather information from as many sources as possible.
c. Develop courses of action that fit within future organizational
resources.
d. Conduct a make vs. buy analysis. Answer: b. Gather information from
as many sources as possible.
⩥ Which of the following is the least serious limitation to decision
analysis?
a. Oversimplifying the problem.
b. Inadequate data.
c. The decision maker's values.
d. The statistical model. Answer: d. The statistical model.
⩥ In a unionized organization, what is the most effective contract
dispute resolution finalization alternative?
a. Mediation.
b. Corporate Campaigns.
c. Arbitration.
d. Strike. Answer: c. Arbitration.
⩥ What does a liquidity ratio measure?
,a. A firm's ability to meet its current obligations in a timely manner.
b. Size of dividends to be paid to shareholders.
c. The percent of total funds provided by creditors.
d. Days in accounts receivable. Answer: a. A firm's ability to meet its
current obligations in a timely manner.
⩥ The real value of financial statements lies in the fact they can be used
to help:
a. Predict the firm's future financial condition.
b. Compute total margin versus periodic gain.
c. Relate the industry average to net profit/loss over time.
d. Understand that a large portion of a hospitals net income may come
from nonoperating gains. Answer: a. Predict the firm's future financial
condition.
⩥ Facing struggles such as declining profit margins, nonprofit healthcare
organizations have become more dependent on what source for
financing capital needs?
a. Philanthropy.
b. Bond financing.
c. Capital leases.
d. Operational leases. Answer: a. Philanthropy.
, ⩥ You work for a county organization that has decided to issue bonds to
fund a new building. What type of bond would be sold on behalf of your
organization?
a. Mortgage bond.
b. Corporate bond.
c. Capital bond.
d. Municipal bond. Answer: d. Municipal bond.
⩥ On a balance sheet, what does the difference between total current
assets and total current liabilities indicate?
a. Cash on hand.
b. Net working capital.
c. Liquid assets.
d. Equity. Answer: b. Net working capital.
⩥ How should supervisors behave toward informal leaders in the
organization?
a. Maintain a positive attitude toward informal leaders.
b. Ensure informal leaders remain at a moderately low status within the
work group.
c. Grant informal leaders occasional favors.
d. Pass information on to informal leaders before giving it to formal
leaders. Answer: a. Maintain a positive attitude toward informal leaders.
