Chapter 2 Key Terms

Question 1

Balance Sheet

Answer 1

A statement of the total assets, liabilities and capital of an organization at a given
moment.

Question 2

Budget Cycle

Answer 2

The annual sequence of planning, budgeting, controlling and reporting to enable
decisions on how an organization will use its resources.

Question 3

Cash Flow Statement

Answer 3

A statement summarizing the inflows and outflows of cash over the
accounting period.

Question 4

Economy

Answer 4

Purchasing resources at least cost.

Question 5

Effectiveness

Answer 5

The extent to which an intervention produces a beneficial result under usual
conditions of clinical care.

Question 6

Financial accounting

Answer 6

Financial information for external users reflecting the performance and
financial standing of the organization.

Question 7

Income statement (income and expenditure account)

Answer 7

A summary of income and
expenditure over the accounting period.

Question 8

Operational (technical, productive) efficiency

Answer 8

Using only the minimum necessary resources
to finance, purchase and deliver a particular activity or set of activities (ie avoiding waste)

Question 9

Management accounting

Answer 9

Information for internal users to help them run the organization
such as budgets, plans, costings and financial appraisals of service developments.

Question 10

Treasury management

Answer 10

Activities ensuring the organization has enough cash to meet all
its financial obligations.