S2_L1: Fiscal Management & Budgeting Flashcards by MindMed Official

Q

This is the process of keeping an organization running efficiently
within its allotted budget.

A

Fiscal Management

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: Fiscal Management is done to improve the way the department
operates by properly planning, recording, and performing procedures that relate to the budget

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: Fiscal Management is often used interchangeably with financial management

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

A poor fiscal management is indicated by a lack of (1)_____ and unnecessary or unplanned (2)_____ that can cause a department to go over budget or fail to meet its objectives.

A

1.record keeping
2. expenditures

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Usually, the fiscal planning is done _____, often coinciding with the fiscal year under which the
department operates.

A

yearly

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Fiscal Management is led by (1)______ in larger organizations or managed with the assistance of (2)______ in smaller organizations.

A

professional financial experts
financial consultants

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Fiscal management records all business (1)_____, focus on (2)____ & ____, and guard against theft, waste or loss of (3)_____

A

transactions
revenue and expenses
assets

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

What is left after debt were paid.

A

Net worth

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Debts of the organization

A

Liabilities

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Debts payable to individuals who have provided products

A

Accounts payable

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Property such as the goods, equipment, buildings, installations, land, investments, and retained earnings

A

Asset

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Represent the value of debt that are held for payment in the future

A

Accrued expenses

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Are promises to pay a certain amount of money at a
certain time in the future

A

Notes payable

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

When expenses exceed revenue.

A

Loss

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Gross income

A

Revenue

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Is an income tax deduction that allow the taxpayer to recover the costs owned property or other assets placed in service over time that have a determinable
useful life.

A

Depreciation

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Is money spent to produce/purchase a service or
product that is sold.

A

Expense

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine the accounting term.

Top priority for managers to determine

A

Costs

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: For individuals (like students), the assets would
include personal cash, savings, interest on savings and investments, and other valuable items that are owned outright

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: Total assets are the amount of the organization’s assets that are owned by its predators. Such
assets are accounts payable, accrued expenses, and notes payable.

A. Both statements are true
B. Both statements are false
C. Only the 1st statement is true
D. Only the 2nd statement is true

A

B. Both statements are false

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: Owner’s equity is the difference between
organization’s total assets and its total liabilities

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

TRUE OR FALSE: Expenses may be a profit when the organization’s revenue exceed the expenses for a scheduled period of time

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

In Healthcare/Clinic Organization and Administration, costs are usually expressed as the cost per ______.

A

patient visit

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Determine what accounting term fits the examples.

sick leave

A. Asset
B. Accrued expenses
C. Accounts payable
D. Liabilities
E. None

A

B. Accrued expenses

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Determine what accounting term fits the examples. Vacation time A. Asset B. Accrued expenses C. Accounts payable D. Liabilities E. None

B. Accrued expenses

Determine what accounting term fits the examples. professionals A. Asset B. Accrued expenses C. Accounts payable D. Liabilities E. None

C. Accounts payable

Determine what accounting term fits the examples. land A. Asset B. Accrued expenses C. Accounts payable D. Liabilities E. None

A. Asset

Determine what accounting term fits the examples. personal cash A. Asset B. Accrued expenses C. Accounts payable D. Liabilities E. None

A. Asset

Determine what accounting term fits the examples. Bills for supplies A. Asset B. Accrued expenses C. Accounts payable D. Liabilities E. None

C. Accounts payable

Enumerate the KINDS of costs.

1. Direct costs 2. Indirect (overhead) costs

Enumerate the CLASSIFICATION of costs.

1. Fixed 2. Variable 3. Semifixed

Expenses for delivering services which Include salaries, equipment, and clinical supplies. A. Direct costs B. Indirect (overhead) cost

A. Direct costs

Rent or mortgage payments, utilities, janitorial services, equipment maintenance, office supplies A. Direct costs B. Indirect (overhead) cost

B. Indirect (overhead) cost

_____ costs are those items necessary regardless of the number of patients there are in a practice or service.

Overhead/ Indirect

The cost increases as the number of patients increases A. Fixed B. Variable C. Semifixed

B. Variable

may vary because of need for overtime or when work hours are decreased as patient census fluctuates A. Fixed B. Variable C. Semifixed

C. Semifixed

The same cost regardless of the number of patients who are treated A. Fixed B. Variable C. Semifixed

A. Fixed

1. rent 2. loan payments 3. laundry services A. Fixed B. Variable C. Semifixed

1. A 2. A 3. B

What is the formula for the total direct cost?

Sum of total labor costs, equipment loan and clinical supplies per month / average number of tx session per month

What is the formula for the total indirect cost?

Sum of lease, phone & internet subscription, and electricity bill per month / average number of tx session per month

This pertains to a physical therapist’s ability to produce income by patient care, including evaluation, treatment planning and patient education

Productivity

What are the factors that affects productivity?

1. Down Time 2. Department Management 3. Supervision 4. Physician’s service 5. Clerical, reception, general office and secretarial personnel

Can limit the employee’s productivity by 35% which makes them 65% productive A. Down Time B. Department Management C. Supervision D. Physician’s service E. Clerical, reception, general office and secretarial personnel

A. Down Time

Necessary to assist in the professional and business activities of the PT department A. Down Time B. Department Management C. Supervision D. Physician’s service E. Clerical, reception, general office and secretarial personnel

E. Clerical, reception, general office and secretarial personnel

Time that an employee’s availability to be productive is infringed upon A. Down Time B. Department Management C. Supervision D. Physician’s service E. Clerical, reception, general office and secretarial personnel

A. Down Time

TRUE OR FALSE: Down time may be a constant or intermittent factor. An example of which is the teaching commitment of a facility A. Both statements are true B. Both statements are false C. Only the 1st statement is true D. Only the 2nd statement is true

A. Both statements are true

TRUE OR FALSE: Patient non-availability is not an example if down time. Transportation lags are an example of down time A. Both statements are true B. Both statements are false C. Only the 1st statement is true D. Only the 2nd statement is true

D. Only the 2nd statement is true

The ______ is the highest paid professional in the department

director

TRUE OR FALSE: The director is not usually involved in direct patient care and is mostly responsible for staff supervision

True

The supervisory needs are dependent on: 1. Kinds of patient ______ 2. Volume and mix of patient _____ 3. Number and training of the _____ working in the service

1. pathology 2. load 3. personnel

TRUE OR FALSE: If the clerical and reception departments are understaffed and there are a large number of patients in the clinic, productivity will be affected

True

This is a set of financial reports that are prepared with aid of a professional such as Certified Public Accountant.

Financial Statement

This is the first statement in the set of financial statements, a statement of an organization’s financial condition.

Balance Sheet

This is a report on the financial performance of an organization over a specific period of time.

Income Statement

This is used to compare the past and current trends that can be used to evaluate current and future performance

Retained Statement

This compares the amount of money earned to the amount of money spent.

Income Statement

TRUE OR FALSE: Difference between revenue and expenses is the net income or loss during the reporting period

True

This is a mandatory part of an organization's financial statement. It reports on the cash the flows through the business from core operations, financing or investing

Cash Flow Statement

Also referred to as an owner’s equity statement. It is used to view the financial health, stability, ad growth potential of the organization

Retained Statement

This is influence by the organization’s net income and premonth of dividends to the owner’s of the organization A. Income Statement B. Retained Statement C. Cash Flow Statement

B. Retained Statement

This is the principal means of controlling the availability and cost of financial resources for a specified period of time

Budgeting

TRUE OR FALSE: Budgeting requires the manager to plan ahead, forecast and anticipate what’s going to happen in the next week from the financial POV. It is a quantitative expression of the plan of action A. Both statements are true B. Both statements are false C. Only the 1st statement is true D. Only the 2nd statement is true

D. Only the 2nd statement is true It anticipates for a whole year.

TRUE OR FALSE: Budgeting is a financial statement of the estimated income and expenditure for an organization, specified in a certain period of time. It is a linear process that requires monitoring and making a revisions of the revenue and as the expenses fluctuates. A. Both statements are true B. Both statements are false C. Only the 1st statement is true D. Only the 2nd statement is true

C. Only the 1st statement is true It is a dynamic process.

They represent the department’s budget for approval

Mid level managers

_____ is an itemized listing of the approved anticipated revenue and projected expenses for an organization

Budget

TRUE OR FALSE: Budgeting is a tool for projecting and monitoring revenues and expenses. Budget numbers need to be consistent and frequently monitored monthly A. Both statements are true B. Both statements are false C. Only the 1st statement is true D. Only the 2nd statement is true

A. Both statements are true

_____ is the point at which revenues equal expenses.

Break-even point

When doing a budget for the following year, it must be done ____ months in advance

3

Once budget has been developed, it has to be (1)____ and (2)_____

1. implemented 2. monitored

Fill in the blanks: Budget Development 1. Estimation of ______ 2. Overall basis individual revenues 3. _______ budget for a day, week, month, and a year 4. _______ budget 5. _______ budget

1. Revenues 2. Expense 3. Consolidated 4. Operating

This is the cornerstone of the budgeting process. It is where you will be able to project the number of cases for every service that you provided in your company or institution.

Statistics Budget

This is a detailed information from statistics budget combined with volume data with the reimbursement data

Revenue Budget

This is a combination of revenue and expense budgets

Operating Budget

This is the key to effective financial management and is the ability to analyze projected to actual performance.

Variance Analysis

1. Difference from quantities consumed and quantity initially allocated to production 2. Arise from difference of standard overhead cost vs actual overhead A. Material Variances B. Labour variances C. Overhead Variances

1. A 2. C

1. Actual wage of workers vs standard wage prevalent for the output specified 2. Difference between price paid and price budgeted especially during inflation A. Material Variances B. Labour variances C. Overhead Variances

1. B 2. A

1. Sum total of the indirect total of labor and expenses cost 2. Difference from quantities consumed and quantity initially allocated to production A. Material Variances B. Labour variances C. Overhead Variances

1. C 2. A

TRUE OR FALSE: The expense budget is derived from the statistics budget.

True