Section 5.1 Flashcards
The cost of borrowing money
Interest charges
The amount charged by the lender
Interest fees
This rate is typically noted on an annual percentage rate
Interest rate
What are processes called to provide assurance that no resources are being lost financial reporting is accurate and that profitability targets are achieved
Internal auditing controls
What is internal control?
The measures systems and protocols used by a business to prevent errors waste and fraud. To ensure compliance.
In bookkeeping terms, what is the book of entry prior to the ledger?
Journal
What is KPI
Key performance indicator-a measurement to monitor the evaluation of the practises success, and whether goals have been met
What is a leasehold improvement?
Enhancements paid for by a tenant to leased space
What are liabilities?
Debts
An assert that can be converted into Cash quickly
Liquid assets
The exercise aimed at formulating a long-term plan to meet future needs usually by extrapolation of known needs
Long range planning
Definition of profit margin
Revenue minus expenses
What would net 10 mean on an invoice?
Payment due within 10 days
What is a no lo practice?
Veterinary practice with little to no profitability
What is a non-exempt worker?
An employee who is not exempt from the minimum wage and overtime requirements of the labour standards act
Revenues, resulting from veterinary activities and veterinary related sales, such as pharmacy sales
Operating income
Hours worked in excess of the maximum regular number of hours fixed by contract or law
Overtime
What is ownership equity?
The portion of a businesses equity, which remains for the owners after all liabilities and creditors have been paid
What is PTO?
Paid time off-a benefit the provides a bank of hours where are the employee pools sick days vacation days and personal days
Various methods used to collect payment from a client
Payment options
The system that calculates the amount you owe employees based on time they worked.
Payroll system
Imposed on employers, and usually calculated as a percentage of salaries that employers pay
Payroll tax
Describe perceived value
The worth that a product or service has in the mind of the consumer. The consumers perceived value of a goods affects the price they are willing to pay for it.
A small fund of cash maintained for incidental expenditures
Petty cash
What is the healthcare software that deals with the day-to-day operations of a veterinary practice?
Practice management software or PMs
What is the present value of money?
The current monetary value of some defined investment return given a specified rate of return
Pretax
Calculated before the deduction of taxes
Describe production pay
Rewards employees based on measurements of the quantity of work and output
A financial gain, especially the difference between the amount earned, and the amount spent
Profit
Summary of the practices, income expenses, and resulting profit or loss for a specified period
Profit and loss
What are profit centers?
A section of the practice that can be assessed in terms of its revenues and expenses
What is a pro forma budget?
A projection or estimate of what may result in the future, given current assumptions and predictions
What is it called when the compensation structure combines a guaranteed salary base with a percentage of an associates production?
Pro-Sal
A written acknowledgement that something of value has been transferred from one party to another
Receipts
An accounting process used to compare two sets of records to ensure the figures are in agreement. It is used to determine whether money, leaving an account matches the amount spent.
Reconcile
Compensating someone for an expense
Reimbursement
A tenants regular payment to a landlord
Rent
What is ROI?
Return on investment-to a single project and expressed as a ratio
All sales of the practice for goods and services
Revenue
What is salary compression?
When employees and lower level jobs are paid almost as much as their colleagues and higher level jobs
The tax on the receipts from sales
Sales tax
What are semi-variable costs?
Expenses, which contain both a fixed cost component and a variable cost component
What is a service charge?
An extra charge assessed for a service
An individual that legally owns a share of stock in a public or private corporation
Shareholders
What is shareholders equity?
Practises total assets minus its total liabilities. It represents the amount by which practice is financed through common and preferred shares.
Setting smaller intermediate milestones to achieve within closer time frames when moving towards an important overall goal
Short range planning
Comparing bank account records to an individuals account balance to uncover any discrepancies
Statement reconciliation
The goods kept on the premises that are available for sale or distribution
Stock
What is strategic planning?
The process of defining our strategy or direction and making decisions on allocating the resources to pursue this strategy
