ACHE Fellowship Exam QUESTION WITH COMPLETE SOLUTIONS

Acid-test ratio Correct Answer: The ratio of total assets to total liability Market Potential Correct Answer: The volume that would be realized if each prospective consumer were to purchase a specific amount of a particular service during a defined future time frame. General Ledger Correct Answer: Entries assign capital costs through depreciation of long-term assets, adjust inventory values, and allocate expenses of central services. Net Revenue Correct Answer: Income actually received, as opposed to that initially posted; equal to gross revenue minus adjustments for bad debts, charity, and discounts to third parties. Non operating revenue Correct Answer: Income generated from non-patient care activities, including investments in securities and earnings from unrelated businesses. Publicly owned healthcare organization Correct Answer: This type organization is required to submit a statement of earnings, financial positions, changes in financial position and earnings annually. Transition Matrix Correct Answer: Probability models that forecast the internal flow of employees from one job category to another. Demand-pull approach Correct Answer: Forecasting organizational needs for human resources by focusing on specific openings that are likely to occur and using these for planning. Supply-push approach Correct Answer: Forecasting the internal supply of employees as they move from their current jobs into others through promotions, lateral moves and terminations. Statistics budget Correct Answer: It provides input date for other budgets Maslow's Hierarchs of needs Correct Answer: From bottom to top: Physiological, safety, belonging, esteem, self actualization Liquidity ratio Correct Answer: A firms ability to meet its current obligations in a timely manner Capital structure ratios Correct Answer: Measures the organizations long term liquidity Municipal Bonds Correct Answer: A bond issued by a state, county, city, or town, or by a state authority or agency to finance projects.