Finance/Business Flashcards
The staff person responsible for ensuring that the business office runs smoothly is in the final analysis
The administrator
In general, the ownership patterns fo US nursing facilities in 2006
Were somewhat stabew
Generating reports on the financial standing of the nursing facility is generally assigned to
The accountant
Responsibility and blame for overspending in the department of nursing and in food services are typically assigned by the owners to the
Administrator
A set of records that lists each monetary transaction of the facility is normally referred to as
The books
The primary purpose of the Generally Accepted Accounting Principles is to
Maximize comparability of financial statements of different orgainzitions
An owner who takes unrecorded cash from the facilities daily cash intake to purchase a tablet for his daughter to use at college has violated the ___ concept
Entity
Instructing the financial manager to record assets at current market value and to not record patient bills expected to become uncollectible violates the ___ concept
Entity
Telling the accountant not to to record overtime paid from the cash box to employees working weekends is violating the __ concept
Full disclosure
Directing the accountant to move from January 1 date to a June 30 fiscal year date in order to minimize the negative image possibly created by an anticipated loss violates the ___ concept
Time perios
Allowing the bookkeeper to destroy vouchers showing payments made for meals to employees once these are recorded may violate the ___ concept
Objective evidence
Pieces of paper indicating money owed to or by the facility, bank statements, and similar pieces of paper or their electronic equivalents are known as
Source documents
An administrator who instructs the accountant to begin reporting facility finances by recording all expenditures and all receipts as they actually occur has decided to use the ___ system of accounting
Cash
It is difficult to recognize items such as depreciation and prepaid insurance in the ___ system of accounting
Cash
An administrator directing the accountant to record revenues when they are earned and expenses whey they are incurred regardless of the time the ash transaction takes place has decided to use the ___ approach to accounting
Accrual
Allowing the facility to accurately measure revenues earned after expenses have been paid or losses incurred by matching revenues and expenses for each time period is the advantage of the ___ system of accounting
Accrual
A summary of the nursing home’s financial well being within a time period is normally referred to as
The financial statements
If the administrator asked the bookkeeper for a list containing every account in the facility, the bookkeeper would hand the administrator the
Chart of accounts
Things owned by the facility are normally referred to a s
Assests
Things owed by the facility, its obligations, are normally referred to as
Liabilities
Money invested in the facility, also known as the facility’s net worth, is normally referred to as
Capital
If the administrator asks the accountant for the journals, the administrator wants to look at
The original entries
The new accountant informs the administrator that to simplify things, he as incorporate all purchases, that will be paid for the next few years into the accounts payable journal. The administrator should
Begin a search for a new accountatnt
Making a debit and a credit entry for each transaction is known as the
Double entry