The term used to define insurance companies and governmental agenciel that pay the majority of the cost of treating patients?
What are third-party payers.
100
Anything with economic value that can somehow help the organization to provide health careto its patients, either directly or indirectly.
What is an asset.
100
The 3 most common financial statments?
What is the balance sheet, Income (operating) Statement, and cash flow statement.
100
The method used to determine how much it would cost to replace that asset.
What is a replacement cost.
200
The aspect of accounting that is a formalized system designed to record the financial history of the health care organization?
What is financial accounting.
200
The complex system of patients and insurers that pay for the care provided by the various health care providers?
What is the Health Care Reimbursement System.
200
The representation of the obligations that an organization has to outside creditors?
What are liabilities.
200
The financial statement that compares the organization's revenues to its expenses?
What is the income (operating) statement.
200
The amount an entity paid to acquire an asset. This amount is the value used as a basis for tax returns and financial statements.
What is historical or aquisition cost.
300
The provision of prospective financial information for making improved decisions?
What is managerial accounting.
300
The difference between a provider's posted charge for service and the amount of payment agreed to by the provider and the third-party payer?
What is the contractual allowance.
300
The unit for which we wish to account. This unit can be a person, department, project, division, or organization.
What is an entity.
300
The financial statement that shows the sources and uses of the organization's cash.
What is the statement of cash flows.
300
The valuation method that adjust the asset's historical cost based on the general rate of inflation.
What is price-level adjusted historical cost.
400
The amount of resources an organization has that are cash in the near term to meet the obligations the organization has that are coming due near term?
What is liquidity.
400
The portion of the bill that a patient pays at the time of service?
What is a co-pay.
400
The residual amound left over when liabilities are subtracted from assets?
What are net assets.
400
The portion of total assets NOT used to repay obligations owed to creditors?
What are NET assets.
400
True or false?
Different problems require the same valuations?
What is false. Unfortunately none of the valuation methods are totally satisfactory for all information needs. Therefore, different problems require different valuations.
500
The term used to understand if an organization will be able to generate enough cash over the next 3,5, and 10 years to meet the major cash needs?
What is solvency.
500
The term used that reflects the fact that contractual allowances and charity care are not included int he revenue amount?
What is net patient revenues.
500
The difference between assets and liabiliities. Another term for net assets or owner's equity?
What is fund balance.
500
The financial statement that tells the financial position of the organization at a point in time.
What is the balance sheet.
500
The valuation method that requires each asset to be valued on the basis of the amount of additional profits that can be generated because we have the asset.