Financing

Question 1

What is the name of the report category that details the differences between the price charged and the price paid by third-party payers?

Answer 1

Allowances for Contractual Deductions

Question 2

Describe fund accounting

Answer 2

a form of financial oversight often found in not-for-profit hospitals and health care organizations in which a specified category or fund is set up when funds are provided for a specific purpose – such as a donation to support rehabilitation

Question 3

What can be defined as a listing of all of an organization’s accounts by title and corresponding numerical code to classify and differentiate between accounts?

Answer 3

Chart of Accounts

Question 4

Revenue accounts increase with _____ postings

Expense accounts increase with _____ postings

Answer 4

credit

debit

Question 5

What can be defined as debts payable to individuals who have provided products or services to the organization on credit such as outstanding bills for supplies, cleaning services, etc.

Answer 5

Accounts payable

Question 6

What can be defined as the value of debts that are held for payment in the future such as PTO and vacation time?

Answer 6

accrued expenses

Question 7

What can be defined as promises or notes to pay a certain amount of money at a certain time in the future such as loan agreements, mortgages, lines of credit, etc.

Answer 7

notes payable

Question 8

What is the difference between the organization’s total assets and its total liabilities called?

Answer 8

the owner’s equity

Question 9

What are the 4 fundamental financial statements?

Answer 9

• Balance sheet
• Income statement
• Cash flow statement
• Retained earnings statement

Question 10

Projected financial performance is reflected in financial plans or budgets, which are referred to as “___ ____” statements

Answer 10

pro forma

Question 11

Which financial statement is a statement of an organization’s financial condition that lists assets, liabilities, and owner’s equity?

Answer 11

balance sheet

Question 12

Which financial statement is a report on an organization’s financial performance over a specific period of time that compares revenues and expenses?

Answer 12

Income Statement

Question 13

Which financial statement shows how an organization’s cash position changes over time and reports on the cash that flows through the business from core operations, financing, and investing?

Answer 13

cash flow statement

Question 14

Which financial statement provides additional details on how owner’s equity changed and information on how profits are used in a business?

Answer 14

Retained Earnings Statement

Question 15

What can be defined as the process of analyzing projected to actual performance, in other words what was budgeted versus what actually happened?

Answer 15

financial analysis

Question 16

What is the difference between what was budgeted versus what actually happened referred to as?

Answer 16

variances

Question 17

What are 3 frequently used financial analyses?

Answer 17

• Common size analysis
• Comparative analysis
• Ratio analysis

Question 18

What can be defined as the amount of a resource consumed in the production of an increment of output?

Answer 18

productivity

Question 19

Revenue management is the management of accounts ______.

Answer 19

receivable

Question 20

Commercial (private) health care insurance plans typically use standardized payment schedules that determine the amount that will be paid for a specific health care service, what is this rate called?

Answer 20

usual and customary rate (UCR)

Question 21

The ___ schedule is a listing of the services that are provided and the charge for each of those services

Answer 21

fee

Question 22

What are health care services most often provided on?

Answer 22

credit (service before payment) - accrual accounting