FACHE BOG Exam - all topics Exam
Questions and Answers Graded A+
Weighted average cost of capital model (WACC) - Correct answer-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 answer-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 answer-Economic evaluation techniques &
accounting evaluation tecchniques
Net present value & internal rate of return - Correct answer-Economic evaluation
techniques (adjusted for he time value of money)
Accounting rate of return & pay back - Correct answer-Accounting evaluation
techniques (not adjusted for the time value of money)
Net working capital - Correct answer-On the balance sheet, what does the
difference between total current assets and total current liabilities indicate?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Infrastructure - Correct answer-Budgets for new capital expenditures include
requests for...
Capital asset pricing model (CAPM) - Correct answer-An equilibrium model that
describes the relationship between market risk and required rate of return
Full-time equivalents per adjusted averaged daily census - Correct answer-The
most common operating indicator used to measure overall staff productivity
The following are considered part of the labor budget - Correct answer-Staff
salaries, hourly wages, employee benefits
Contract staff expenses - Correct answer-Are NOT considered part of the labor
budget
claim denial - Correct answer-Claim denial is a major impediment to prompt
payment in the revenue cycle process
FTE - Correct answer-20.8
Expense ratio - Correct answer-Best indicator of operating leverage when
evaluating capital budgeting performance
Analysis of proposed capital investment includes - Correct answer-Cost of capital,
cash flow projections, rush assessment
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers Graded A+
Weighted average cost of capital model (WACC) - Correct answer-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 answer-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 answer-Economic evaluation techniques &
accounting evaluation tecchniques
Net present value & internal rate of return - Correct answer-Economic evaluation
techniques (adjusted for he time value of money)
Accounting rate of return & pay back - Correct answer-Accounting evaluation
techniques (not adjusted for the time value of money)
Net working capital - Correct answer-On the balance sheet, what does the
difference between total current assets and total current liabilities indicate?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Infrastructure - Correct answer-Budgets for new capital expenditures include
requests for...
Capital asset pricing model (CAPM) - Correct answer-An equilibrium model that
describes the relationship between market risk and required rate of return
Full-time equivalents per adjusted averaged daily census - Correct answer-The
most common operating indicator used to measure overall staff productivity
The following are considered part of the labor budget - Correct answer-Staff
salaries, hourly wages, employee benefits
Contract staff expenses - Correct answer-Are NOT considered part of the labor
budget
claim denial - Correct answer-Claim denial is a major impediment to prompt
payment in the revenue cycle process
FTE - Correct answer-20.8
Expense ratio - Correct answer-Best indicator of operating leverage when
evaluating capital budgeting performance
Analysis of proposed capital investment includes - Correct answer-Cost of capital,
cash flow projections, rush assessment
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
