Chapter 6
A statement of the core beliefs that underlie the culture of the organization
What is a Mission Statement?
Focuses on all activities associated with billing and collections.
What is Revenue Cycle?
The amount of money borrowed in a loan transaction.
What is principal?
A graphical representation of time and cash flows.
What is a timeline?
The federal government agency that regulates the sale of securities.
What is the Securities and Exchange Commission (SEC)?
Specified goals including financial, that an organization strives to attain.
What are Organizational Goals
The refusal of a third-party payer to honor a submitted claim.
What is Claims Denial?
Failure by a borrower to make promised interest or principal payments.
What is default?
The use of time value of money techniques to estimate the value of an investment.
What is Discounted Cash Flow (DCF) Analysis?
Inflows of assets resulting from the exchange of goods or services with customers.
What are Revenues?
A statement that describes the desired position of the business at a future point in time.
What is a Vision Statement?
The ability of a business to meet its cash obligations as they come due.
What is liquidity?
The risk inherent in the operations of a business, assuming it uses no debt financing.
What is Business Risk?
The process of finding the future value of a current (starting) amount of a series of cash flows.
What is Compounding?
The cost of doing business; the dollar value of resources used to provide goods & services.
What are Expenses?
Quantitative targets that an organization sets to meet its organizational goals.
What are Organizational Objectives or KPIs?
A value used to assess one element of performance.
What is Metric ?
The return required by owners to furnish equity capital.
What is Cost of Equity?
This measures the expected rate (percentage) of return on an investment.
What is Internal Rate of Return (IRR)?
Assets minus Liabilities or the book value of the ownership position in a business.
What is Equity?
The portion of the operating plan that focuses on the finance function.
What is the Financial Plan?
The proportion (percentage) of hospital beds occupied.
What is Occupancy Rate?
The return (interest rate) required by lenders to furnish debt capital.
What is Cost of Debt?
The sum of the present values of all of the project's cash flows when discounted at the project's opportunity cost of capital.
What is Net Present Value (NPV)?
An item that either possesses or creates economic value for the organization.
What is an Asset?