Chap 7

Question 1

Revenue Cycle

Answer 1

provide (and hence bear the costs of) services up front but are not paid for those services until later

Question 2

Average Collection Period

Answer 2

commonly called days in patient accounts receivable, is the average time that it takes a provider to collect for services rendered. On average, collecting a receivable takes a little less than 50 days.

Question 3

aging schedule

Answer 3

A table that expresses a business’s accounts receivable in increments according to how long it takes to collect each account.

Question 4

liquidity

Answer 4

ability of a business to meet its cash obligations as they become due

Question 5

Marketable Securities (Short-Term Investments

Answer 5

short-term investments held by businesses in lieu of cash

Question 6

base stock

Answer 6

amount of inventory held to meet expected usage

Question 7

metric

Answer 7

value used to assess one element of performance

Question 8

number of visits per physician

Answer 8

patient volume of an outpatient facility on a per physician basis.

Question 9

primary goal of cash management

Answer 9

reduce the amount of cash held to the minimum necessary to conduct business.