Admin & Finance - Section 1: Financial Reports & Budgeting Flashcards
The income statement measures a company’s ____ ____ over a specific accounting period.
Financial performance
Financial performance is assessed by giving a summary of how the business incurs its ____ and ____ through both ____ and ____ activities.
Revenues and expenses; operating and non-operating activites.
The income statement shows the net profit or loss incurred over a specific accounting period, typically over a ____ ____ or ____.
Fiscal quarter or year
The income statement is also known as the “____ and ____ ____” or the “____ of ____ and ____”.
Profit and loss statement; statement of revenue and expense
A balance sheet is a financial statement that summarizes the company’s ____, ____, and shareholders’ ____ at a specific point in time.
Assets, liabilities, and shareholders’ equity
A company’s assets, liabilities, and shareholders’ equity are balance sheet segments that give investors an idea as to what the company ____ and ____, as well as the amount invested by shareholders.
Owns and owes
The balance sheet aderes to the following formula: ____ + ____ = ____
Liabilities + shareholders’ equity = assets
A ____ ____ is a bookkeeping worksheet in which the balances of all ledgers are compiled into debt and credit columns.
Trial balance
A company prepares a trial balance periodically, usually at the ____ of every reporting period.
End
The general purpose of producing a trial balance is to ensure the entries in a company’s bookkeping system are ____ ____.
Mathematically correct
The ____ ____ and ____ ____ combined makes up the components of the trial balance.
Income statement and balance sheet
A trial balance is required to be presented ____ for the cost reporting period being reported.
Annually
A cash flow statement complements the ____ ____ and ____ ____.
Balance sheet and income statement
A cash flow statement represents a ____ part of a company’s financial reports.
Mandatory
A cash flow statement records the amount of ____ and ____ ____ entering and leaving a company.
Cash and cash equivalents
A cash flow statement allows owners an understanding of: 1), 2), and 3).
1) How a company’s operations are running
2) Where money is coming from
3) How money is being spent
The cash flow statement is partitioned into 3 segments: 1), 2), and 3).
1) Cash flow resulting from operating activities
2) Cash flow resulting from investing activities
3) Cash flow resulting from financial activities
The cash flow statement may include a disclosure of ____-____ ____ activities.
Non-cash financing
Cash basis accounting records incomes as it’s ____ and expenses as they’re ____.
Received; paid
What is this an example of? As soon as you receive the check and deposit, you record in your books; as soon as you mail a check out or send a payment, it’s recorded as an expense.
Cash basis accounting
What is this an example of? For a medical claim, the income is occurred when services are rendered but may not receive payment until 2-4 weeks later.
Accrual-based accounting
RHC cost reporting requires what type of accounting?
Accrual-based accounting
RHCs often have to convert financial statements from a ____ basis to ____ basis
Cash basis to accrual basis
RHCs often have to convert financial statements from a ____ basis to ____ basis
Cash basis to accrual basis
A term used to describe the reduction in the value of an asset over a number of years.
Depreciation
A ____ ____ is a table that shows the depreciation amount over the span of the asset’s life.
Depreciation schedule
For accounting and tax purposes, the ____ ____ is calculated and used to “write-off”the cost of purchasing high-value assets over time.
Depreciation expense
