NAB Domain 3 - Finance and Accounting with 100% correct answers

Accelerated Method of Depreciation A depreciation method that allows for larger amounts of depreciation in early years and smaller amounts in later years. (Not used in Medicare certified facilities) Accounting Equation Assets = Liabilities + Owner's Equity (capital). This equation states the assets of a firm are equal to the claims of the creditors plus the claims of the owners. The balance sheet is a detailed statement of this equation. Accounts Payable Amounts owed to suppliers for goods and services Accounts Receivable Amounts to be received in the future due to the sale of goods or services Accrual Basis Accounting A system of accounting in which revenues are recorded in the period earned, and expenses are recorded in the period incurred even if cash is received or paid in a later or earlier time period (used in Medicare buildings) Accumulated Depreciation The total depreciation from the start of the life of an asset to any point in time. Acid-test (quick) ratio Cash and other current assets that can be converted to cash right away divided by current liabilities - a measure of the firm's ability's to pay its current liabilities in the very short term Adjusting Entries Entries made at the end of an accounting period to record certain transactions or other accounting events that have not been recorded or have been recorded improperly during the accounting period. (entries for depreciation expenses or unused portions of prepaid expenses) Administrative Information System Information technology that is designed to assist in carrying out financial and administrative support activities such as payroll, patient accounting, billing, accounts receivable, materials management, budgeting, cost control and office automation Aging of Accounts Receivable Summarizing unpaid balances in terms of age groups; such s currently due, 1-30 days past due, 31-60 days past, and each of the remaining 30-day periods through 151-180 days and finally more than 180 days past due. It is a step in the collections effort, in reporting on the balance sheet a deduction from accounts receivable for estimated bad debt, and in making write-off decisions Aging Schedule Shows the length of time that various amounts within each resident's account have been outstanding Allowable Charge The maximum fee that a third party will use in reimbursing or paying a provider for a service rendered Allowable Costs Costs that are reimbursable under a third-party payment formula. Amortization of Debt The periodic reduction of a debt by regular payments applied to both principal and interest over a scheduled period. Ancillary Charges Extra charge for supplies and services (drugs an lab tests, that are not included in the per diem rate) Anti-Kickback Law Penalizes anyone who knowingly and willfully solicits, receives, offers, or pays a remuneration in cash or kind to induce, or in return for: referring an individual to a person for the furnishing of an item to be paid for the MCD or MCR; or arranging or recommending the purchase, lease, or order of goods or services to be paid for under MCD/MCR Assets Resources owned by a business that are measured in monetary terms. Can be current (cash, accounts receivable, supply inventories, and prepaid expenses_ or noncurrent (property, plant, equipment) Audit Examination of accounting systems, controls, and records to ascertain their conformity to legal and professional standards and their adequacy in protecting against loss of assets by fraud and waste. Average Daily Census average number of residents per day over a specific time period such as a week, month, or year Baby Boomers people born between 1946 and 1964 - constitutes approximately 70 million Americans expected to severely strain the nation's healthcare system Bad Debt An account receivable deemed uncollectible Balance Sheet A report summarizing a firm's assets, liabilities, and owner's equity at a specific date; statement of the financial position