WGU C428 Session 1 Latest 2023 Rated A+

WGU C428 Session 1 Latest 2023 Rated A+ Accounting - the measurement and recording of events that reflect the operations, assets, expenses, and other financing of an organization. Breakeven analysis determines the point when the investment in the project will generate a positive return. Business manager or SBU manager the manager responsible for the finance function in a small healthcare organization, such as a medical practice with one or a few clinicians. Call provision gives the issuer the right to redeem the bonds before maturity under specified terms. A business will call a bond issue and refund it if interest rates fall sufficiently after the bond has been issued. Capital investment analysis involves analyzing potential expenditures on land, buildings, and equipment and deciding whether or not the organization should undertake those investments. A capital investment analysis consists of four steps: (1) estimate the expected cash flows, (2) assess the riskiness of those flows, (3) estimate the appropriate opportunity cost of capital, and (4) determine the project's profitability and breakeven characteristics. Capital structure The business's mix of debt and equity financing, often expressed as the percentage of debt financing. CFO chief financial officer, who typically reports directly to the chief executive officer (CEO) and is responsible for all finance activities within the organization. Compounding the process of determining the future value of a current cash flow or series of flows. Comptroller responsible for accounting and reporting activities. The comptroller (controller) direct managers with responsibility for specific functions, such as the patient accounts manager. Cost of debt the interest rate set on new debt. Cost of Equity the return required by owners to furnish equity capital. Debt the state of owing money. Debt contract is a legal document that spells out the rights and obligations of both lenders and borrowers. Discounting is the process of finding the present value of a future cash flow or series of flows. Discounted cash flow analysis uses time value of money techniques to estimate the value of an investment's expected cash flows. Equity the sum of the assets. Floating rate rate changes over time as interest rates in the economy rise and fall. For profit corporation - a legal business entity that is separate and distinct from its owners and managers. Health Care Finance - refers to the accounting and financial management principles and practices used within healthcare organizations to ensure the financial well being of the enterprise. 1. Micro - financial functions practiced by a health care organizations. 2. Macro - The system that societies use to pay for services delivered by health care organizations. Health Service Organizations - any entity that provides patient care services. Horizontal system a business entity that owns a group of similar providers, such as hospitals. Interest rates is the price paid to obtain debt capital. Internal rate of return (IRR) which is the discount rate that forces a project's NPV to equal zero, measures a project's expected rate of return. If a project's IRR is greater than its opportunity cost of capital, the project is expected to be profitable, and the higher the IRR, the more profitable the project. Limited Liability Company (LLC) a corporation that combines some features of a partnership with others of a corporation Limited partnership a partnership in which the general partners have most of the control and unlimited liability while the limited partners have little control and liability that is limited to their initial contribution. Limited liability partnership (LLP) a partnership that limits the professional (malpractice) liability of its members. Long Term Debt - debt that has a maturity greater than one year. Managerial Finance the use of theory, principles, and concepts developed to help managers make better financial decisions. Maturity the amount of time until a loan matures. Net present value (NPV) the sum of the present values of all the project's cash flows when discounted at the project's opportunity cost of capital. NPV measures a project's expected dollar profitability. An NPV greater than zero indicates that the project is expected to be profitable after all costs, including the opportunity cost of capital, have been considered. Furthermore, the higher the NPV, the more profitable the project. Patient capture the concept that once a patient enters the system at one point (e.g., a doctor's office), all services needed by that patient will be provided within the system. Partnership an unincorporated business that is created and owned by two or more people. Post audit - a post-audit is used to review the process to check the outcomes of individual investment projects after the initial investment is completed. This will help to improve the operations and the investment process. Professional corporation (PC) a type of corporate business organization in which the owner/ managers retain professional (medical) liability. Called a professional association in some states. Proprietorship a simple form of business owned by one person. Also called sole proprietorship. Residual earnings the earnings (profits) of a business after all expenses (including interest on debt financing) have been paid Restrictive covenants provisions designed to protect bondholders against detrimental managerial actions. Return on investment (ROI) - assess project profitability. Treasurer responsible for the acquisition and management of capital (funds). The treasurer direct managers with responsibility for specific functions, such as the cash manager Trustee assigned to make sure that the terms of a bond contract are carried out. Vertical system An entity that owns a group of related, but not identical, providers, such as hospitals, medical practices, and nursing homes.