Topic 7: BUDGETING Flashcards

1
Q

Process of keeping an organization running efficiently within its allotted budget.

A

Fiscal management & Budgeting

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2
Q

Property
Fully paid equipments
Source of collateral

A

Assets

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3
Q

Debts

A

Liabilities

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4
Q

What is left after debt were paid;
Difference between the asset and the
liabilities

A

Net Worth

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5
Q

Debts payable to individuals who have provided products

A

Accounts Payable

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6
Q

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

A

Accrued Expenses

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7
Q

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

A

Notes Payable

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8
Q

Income without expenses deducted yet

A

Gross Income

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9
Q

Expenses have already been deducted from the gross income

A

Net Income

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10
Q

Money spent to produce/purchase a service or product that is sold

A

Expense

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11
Q

Expenses exceed revenue

A

Loss

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12
Q

Income tax deduction that allow the taxpayer to recover the costs owned property or other assets.

A

Depreciation

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13
Q

Expenses for delivering services

A

Direct Costs

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14
Q

Types of indirect cost

A

Variable, Fixed, & Semi-fixed

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15
Q

Physical therapist’s ability to produce income by patient care, including evaluation, treatment planning and patient education

A

Productivity

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16
Q

Time that an employee’s availability to be productive is infringed upon

17
Q

The highest paid professional in the department;
Not usually involved in direct patient care and is mostly responsible for staff supervision

18
Q

majority of a director’s responsibility are ______ functions

A

Managerial

19
Q

They are necessary to assist in the professional and business activities of the PT department

A

Clerical, reception, general office and secretarial personnel

20
Q

Set of financial reports that generally include, prepared with aid of a professional such as Certified Public Accountant (CPA)

A

Financial Statements

21
Q

First statement in the set of financial statement, a statement of an organization’s financial condition

A

Balance sheet

22
Q

Zero net income

23
Q

A report on the financial performance of an organization over a specific period of time

A

Income statement

24
Q

A mandatory part of an organizations financial statement;
It reports on the cash that flows through the business from core operations, financing or investing

A

Cash flow statement

25
Q

Money earned that still hasn’t been claimed/given yet

A

Accounts receivable

26
Q

Short report of beginning balance of the year, net
income, dividends paid, and current balance

A

Retained / Owner’s equity statement

27
Q

Principal means of controlling the availability and cost of financial resources for a specified period of time

28
Q

The point at which revenues equal expenses.

A

Break-even Point

29
Q

Cornerstone of the budgeting process;
● Does not provide detailed information on required resources
● Provides general guidance

A

Statistics budget

30
Q

Detailed information from statistics budget combined with volume data with the reimbursement data

A

Revenue budget

31
Q

Derived from statistics budget
● Cost of providing services
● Divided into labor and non-labor components

A

Expense budget

32
Q

Combination of revenue and expense budgets
● Pro forma income statement

A

Operating budget

33
Q

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

A

Variance Analysis

34
Q

Expenses

A

Material variances

35
Q

Salary

A

Labour variances

36
Q

Other expenses

A

Overhead variances