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Details Title: HC Financial Statements Description: Financial Management of Health Care Organizations - Chapter 2 Total Flash Cards: 32 Created: 08/26/2006 12:56:55	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term The Four Basic Financial Statements Common To ALL Organizations Definition Balance Sheet Income Statement (or Statement of Operations) Statement of Changes in Owners Equity (or Statement of Changes in Net Assets) Statement of Cash Flows Term The Four Basic Financial Statements Common to Not-for-Profit Health Care Orgs. Definition Balance Sheet Statement of Operations Statment of Changes in Net Assets Statment of Cash Flows Term The Four Basic Financial Statements Common to Investor-owned Health Care Organizations. Definition Balance Sheet Income Statement Statement of Changes in Owners Equity 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 Heading Body Notes Term Three items required in the heading of a balance sheet Definition Name of the Organization Name of the Statement 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 Cash and Cash Equivelents Short-term investments Assets Limited as to use 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 Assets Limited as to Use Long-term Investments Property and Equipment, Net Other Assets Term Three types of properties and equipment, net Definition Major Capital Investments: Land Plant 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 Unrestricted Net Assets Temporarilty Restricted Net Assets 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 Operating Income Non-operating Income Net Income Before Taxes Provision for Taxes Net Income After Taxes Term Body of an income statement for Not-for-profit HCO's has 5 sections. What are they? OOEOI Definition Operating Income Other Income Excess of Revenues Gains and Other Support over Expenses Other Items 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 Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Net Increase (Decrease) in Cassh and Cash Equivalents