Shared Flashcard Set

Details

HC Financial Statements
Financial Management of Health Care Organizations - Chapter 2
32
Accounting
Graduate
08/26/2006
Click here to study/print these flashcards.

Create your own flash cards! Sign up here.

Additional Accounting Flashcards

 

 

Cards

Term
The Four Basic Financial Statements Common To ALL Organizations
 Definition
  1. Balance Sheet
  2. Income Statement (or Statement of Operations)
  3. Statement of Changes in Owners Equity (or Statement of Changes in Net Assets)
  4. Statement of Cash Flows
Term
The Four Basic Financial Statements Common to Not-for-Profit Health Care Orgs.
 Definition
  1. Balance Sheet
  2. Statement of Operations
  3. Statment of Changes in Net Assets
  4. Statment of Cash Flows
Term
The Four Basic Financial Statements Common to Investor-owned Health Care Organizations.
 Definition
  1. Balance Sheet
  2. Income Statement
  3. Statement of Changes in Owners Equity
  4. Statement of Cash Flows
Term
What is a Balance Sheet in investor owned versus not for profit health care orgs.
 Definition
Investor Owned A Summary of the Organizations Assets, liabilities, and shareholders equity Not For Profit Organizations assets, liabilities, and Net assets.
Term
Three Sections of a Balance Sheet
 Definition
  1. Heading
  2. Body
  3. Notes
Term
Three items required in the heading of a balance sheet
 Definition
  1. Name of the Organization
  2. Name of the Statement
  3. Two Dates
Term
What does the Balance Sheet capture?
 Definition
What the organization looks like at a particular point in time (usually the last day of the accounting period)
Term
The Basic Accounting Equation:

Assets =
 Definition
Assets = Liabilities + Owners' Equity
Term
In investor-owned organizations the basic accounting equation:

Assets=
 Definition
Assets=Liabilites + Shareholders' Equity
Term
In not-for-profit, business oriented health care orgs, what is the basic accounting equation:


Assets=
 Definition
assets = Liability + Net Assets
Term
What is an asset and what are the two categories of assets?
 Definition
An asset is a resource owned by the organization.

the two categories are: Current Assets and Non Current Assets
Term
Current Assets are defined by
 Definition
Assets that will be consumed within 1 year. They help turn the capacity of the orgainzation into service.
Term
Current Assets include:
CSAPS
 Definition
  1. Cash and Cash Equivelents
  2. Short-term investments
  3. Assets Limited as to use
  4. Supplies, Prepaid expenses and other current assets
Term
Current Assets are ordered traditionally from:
 Definition
Most liquid to least liquid.
Term
Net Accounts Recievable in a HCP are calculated:
 Definition
Gross Patient Accounts Receivable
- Discounts and Allowances
- Allowance for Uncollectables (bad debt)
Term
Non current Assets defined
 Definition
The Resources of the organization that will be used or consumed over periods longer than one year.
Term
Non Current Assets are Commonly Organized into the following 4 categories:
ALPO
 Definition
  1. Assets Limited as to Use
  2. Long-term Investments
  3. Property and Equipment, Net
  4. Other Assets
Term
Three types of properties and equipment, net
 Definition
Major Capital Investments:
  1. Land
  2. Plant
  3. Equipment
Term
To derive Properties and Eqiuipment, Net:
 Definition
Subtract Accumulated Depriciation from the origonal cost of the asset (except land)
Term
Liabilities defined:
 Definition
The obligations of a health care provider to pay its creditors. They are divided into current (with in 1 year) and non current.
Term
Accounts Payable are:
 Definition
Accounts payable are obiligations to pay suppliers who have sold the helath care org goods or services on credit.
Term
Accrued expenses are:
 Definition
Accrued expenses are: expenses that arise in the normal course of business which you have not yet been paid. Including: Salaries, Wages and Intrest.
Term
Two Categories of Non-current Liabilities
 Definition
Obligations payed over more than 1 year: 1. Mortgages Payable
2. Bonds Payable
Term
Term used to show communities interest in the assets of an organization:
 Definition
Net Assets
Term
Net Assets =
 Definition
net assets = assets - liabilities
Term
for not-for-profit health care providers, the net assets section of the balance sheet is analagous to _______ of a for-profit organizations balance sheet
 Definition
the owner's equity section
Term
Net Assets in a not-for-profit hco must categorized net assets into three categories of restrictions. What are they?
 Definition
  1. Unrestricted Net Assets
  2. Temporarilty Restricted Net Assets
  3. Permanently Restricted Net Assets
Term
Statement of Operations defined:
 Definition
a summary of the organizations revenues and expenses over a period of time. The time period is usually between statements such as a quarter, half year, or fiscal year.
Term
Body of an income statement for investor owned HCO's has 5 sections. What are they?

ONNPT
 Definition
  1. Operating Income
  2. Non-operating Income
  3. Net Income Before Taxes
  4. Provision for Taxes
  5. Net Income After Taxes
Term
Body of an income statement for Not-for-profit HCO's has 5 sections. What are they?

OOEOI
 Definition
  1. Operating Income
  2. Other Income
  3. Excess of Revenues Gains and Other Support over Expenses
  4. Other Items
  5. Increase in Unrestricted Net Assets
Term
The Statement of Cash Flows answers the question:
 Definition
Where did the cash come from and where did it go?
Term
The statement of cash flows is organized into the following 4 sections
 Definition
  1. Cash Flows from Operating Activities
  2. Cash Flows from Investing Activities
  3. Cash Flows from Financing Activities
  4. Net Increase (Decrease) in Cassh and Cash Equivalents
Supporting users have an ad free experience!