HCAD exam 4 vocab Questions and Answers
with Verified Solutions | Latest Updated 2026
Patient Ledger Account of the charges rendered to an
individual
patient.
General Ledger Technically, the record of all the firm's
transactions;
the term often refers to the fixed and
collective
assets, such as depreciation, that must be
allocated
to operational units.
Pro Forma A forecast of financial statements
establishing the
future financial position of the organization
for a
given set of operating conditions or
decisions.
Gross Revenue An entry to the patient ledger of the charge
for a
specific healthcare service; no longer a
meaningful
measure.
, Net Revenue Actual revenue received, as opposed to
that
initially posted; equal to gross revenue
minus
adjustments for bad debts, charity, and
discounts
to third parties ("contractual allowance").
Bad Debts Cost for patients who were expected to
pay for
care but did not.
Nonoperating Revenue Income generated from non-patient-care
activities,
including investments in securities and
earnings
from unrelated businesses.
Managerial Accounting A process of restructuring transaction data
to
support monitoring, planning, setting
expectations,
and improving performance of
accountability
centers.
Operating Budget A forecast of expected income and
expenses
developed by finance and used to assess
corporate or major service line
performance.
(detailed projection of corp income and
expense/monitor fin prof. and verify capital
manag)
with Verified Solutions | Latest Updated 2026
Patient Ledger Account of the charges rendered to an
individual
patient.
General Ledger Technically, the record of all the firm's
transactions;
the term often refers to the fixed and
collective
assets, such as depreciation, that must be
allocated
to operational units.
Pro Forma A forecast of financial statements
establishing the
future financial position of the organization
for a
given set of operating conditions or
decisions.
Gross Revenue An entry to the patient ledger of the charge
for a
specific healthcare service; no longer a
meaningful
measure.
, Net Revenue Actual revenue received, as opposed to
that
initially posted; equal to gross revenue
minus
adjustments for bad debts, charity, and
discounts
to third parties ("contractual allowance").
Bad Debts Cost for patients who were expected to
pay for
care but did not.
Nonoperating Revenue Income generated from non-patient-care
activities,
including investments in securities and
earnings
from unrelated businesses.
Managerial Accounting A process of restructuring transaction data
to
support monitoring, planning, setting
expectations,
and improving performance of
accountability
centers.
Operating Budget A forecast of expected income and
expenses
developed by finance and used to assess
corporate or major service line
performance.
(detailed projection of corp income and
expense/monitor fin prof. and verify capital
manag)
