ACHE BOG TEST BANK QUESTIONS WITH
VERIFIED ANSWERS FULL REVIEW
●● Net Assets
Answer: = total assets - total liabilities
●● Gross Revenue
Answer: All the revenue generated by a business during a stated period
of time. No longer a meaningful measure.
●● General Ledger
Answer: -Record of all accounts and transactions
-Often refers to fixed and collective assets such as depreciation
●● Nonoperating Revenue
Answer: - Income generated from non-patient care activities including
investments in securities and earnings from unrelated businesses.
●● Internal Rate of Return (IRR)
Answer: -minimum return one needs to break even on an investment
-it is the necessary Net present value + Total market value = current cost
of investment.
, ●● Current Liabilities
Answer: Economic obligations or debts that are due within 1 year
●● Current Assets
Answer: Resources of a business that are converted into cash within one
year
●● Capitated Price
Answer: -Fixed monthly payment to providers from a 3rd party payer for
each person enrolled in the plan, regardless of whether they receive care.
-Also known as capitation, it provides a financial incentive to a
healthcare organization to keep its population from using more
healthcare services than necessary because the organization profits only
if the total cost of treating the specified population falls below the total
capitated price provided by the third-party payer.
●● Capital Restructure Ratios
Answer: Ratios that measure an organizations long term liquidity by
measuring a variety of relationships to capital.
●● Break-even analysis
Answer: analysis to determine the unit volume and dollar sales needed to
be profitable given a particular price and cost structure
VERIFIED ANSWERS FULL REVIEW
●● Net Assets
Answer: = total assets - total liabilities
●● Gross Revenue
Answer: All the revenue generated by a business during a stated period
of time. No longer a meaningful measure.
●● General Ledger
Answer: -Record of all accounts and transactions
-Often refers to fixed and collective assets such as depreciation
●● Nonoperating Revenue
Answer: - Income generated from non-patient care activities including
investments in securities and earnings from unrelated businesses.
●● Internal Rate of Return (IRR)
Answer: -minimum return one needs to break even on an investment
-it is the necessary Net present value + Total market value = current cost
of investment.
, ●● Current Liabilities
Answer: Economic obligations or debts that are due within 1 year
●● Current Assets
Answer: Resources of a business that are converted into cash within one
year
●● Capitated Price
Answer: -Fixed monthly payment to providers from a 3rd party payer for
each person enrolled in the plan, regardless of whether they receive care.
-Also known as capitation, it provides a financial incentive to a
healthcare organization to keep its population from using more
healthcare services than necessary because the organization profits only
if the total cost of treating the specified population falls below the total
capitated price provided by the third-party payer.
●● Capital Restructure Ratios
Answer: Ratios that measure an organizations long term liquidity by
measuring a variety of relationships to capital.
●● Break-even analysis
Answer: analysis to determine the unit volume and dollar sales needed to
be profitable given a particular price and cost structure
