S2_L1: Fiscal Management & Budgeting Flashcards
This is the process of keeping an organization running efficiently
within its allotted budget.
Fiscal Management
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
True
TRUE OR FALSE: Fiscal Management is often used interchangeably with financial management
True
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.
1.record keeping
2. expenditures
Usually, the fiscal planning is done _____, often coinciding with the fiscal year under which the
department operates.
yearly
Fiscal Management is led by (1)______ in larger organizations or managed with the assistance of (2)______ in smaller organizations.
- professional financial experts
- financial consultants
Fiscal management records all business (1)_____, focus on (2)____ & ____, and guard against theft, waste or loss of (3)_____
- transactions
- revenue and expenses
- assets
Determine the accounting term.
What is left after debt were paid.
Net worth
Determine the accounting term.
Debts of the organization
Liabilities
Determine the accounting term.
Debts payable to individuals who have provided products
Accounts payable
Determine the accounting term.
Property such as the goods, equipment, buildings, installations, land, investments, and retained earnings
Asset
Determine the accounting term.
Represent the value of debt that are held for payment in the future
Accrued expenses
Determine the accounting term.
Are promises to pay a certain amount of money at a
certain time in the future
Notes payable
Determine the accounting term.
When expenses exceed revenue.
Loss
Determine the accounting term.
Gross income
Revenue
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.
Depreciation
Determine the accounting term.
Is money spent to produce/purchase a service or
product that is sold.
Expense
Determine the accounting term.
Top priority for managers to determine
Costs
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
True
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
B. Both statements are false
TRUE OR FALSE: Owner’s equity is the difference between
organization’s total assets and its total liabilities
True
TRUE OR FALSE: Expenses may be a profit when the organization’s revenue exceed the expenses for a scheduled period of time
True
In Healthcare/Clinic Organization and Administration, costs are usually expressed as the cost per ______.
patient visit
Determine what accounting term fits the examples.
sick leave
A. Asset
B. Accrued expenses
C. Accounts payable
D. Liabilities
E. None
B. Accrued expenses
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.
- Direct costs
- Indirect (overhead) costs
Enumerate the CLASSIFICATION of costs.
- Fixed
- Variable
- 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
- rent
- loan payments
- laundry services
A. Fixed
B. Variable
C. Semifixed
- A
- A
- 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?
- Down Time
- Department Management
- Supervision
- Physician’s service
- 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:
- Kinds of patient ______
- Volume and mix of patient _____
- Number and training of the _____ working in
the service
- pathology
- load
- 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)_____
- implemented
- monitored
Fill in the blanks: Budget Development
- Estimation of ______
- Overall basis individual revenues
- _______ budget for a day, week, month, and a year
- _______ budget
- _______ budget
- Revenues
- Expense
- Consolidated
- 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
- Difference from quantities consumed and quantity initially allocated to production
- Arise from difference of standard overhead cost
vs actual overhead
A. Material Variances
B. Labour variances
C. Overhead Variances
- A
- C
- Actual wage of workers vs standard wage prevalent for the output specified
- Difference between price paid and price budgeted especially during inflation
A. Material Variances
B. Labour variances
C. Overhead Variances
- B
- A
- Sum total of the indirect total of labor and expenses cost
- Difference from quantities consumed and quantity initially allocated to production
A. Material Variances
B. Labour variances
C. Overhead Variances
- C
- A
TRUE OR FALSE: The expense budget is derived from the statistics budget.
True
