NAB CORE RCAL FINANCIAL Exam|Questions and
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,A depreciation method that allows for larger amounts of depreciation in early years and smaller
amounts in later years. The double declining-balance method is an example. This enables the
owner to receive tax and/or reimbursement benefits more quickly than using the straight line
method. - Answer Accelerated Method of Depreciation
The process of identifying, recording, and communicating information about the financial
position and results of operations of a business entity, using principles designed to facilitate
informed decision-making by the entity's managers as well as by external groups. - Answer
Accounting
Assets = Liabilities + Owners' Equity (capital). This equation states that 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. - Answer Accounting Equation
Amounts owed to suppliers for goods and services. - Answer Accounts Payable
Amounts owed to the facility for services or for the sale of goods. - Answer Accounts
Receivable
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.
(Contrast with cash basis of accounting) - Answer Accrual Basis of Accounting
The total depreciation from the start of the life of a plant asset to any point in time. - Answer
Accumulated Depreciation
Cash and other current assets that can be converted to cash right away (such as marketable
securities and current receivables) divided by current liabilities. A measure of the ability of a
, firm to pay its current liabilities in the very short term (see also CURRENT RATIO). - Answer
Acid-Test Ratio (Quick Ratio)
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 improperly recorded during the
accounting period. Examples include entries for depreciation expense and unused portions of
prepaid expenses. - Answer Adjusting Entries
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. - Answer Administrative
Information System
Summarizing unpaid balances in terms of age groups, such as: currently due, 1-30 days past
due, 31-60 days past due each of the remaining 30-day periods through 151-180 days past due,
and finally past due more than 180 days. This classification may be broken down by type of
debtor. Aging receivables 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. -
Answer Aging of Accounts Receivable
Also called an "aging report," it shows the length of time that various amounts within each
patient's account have been outstanding (not paid) - Answer Aging Schedule
The maximum fee that a third party will use in reimbursing or paying a provider for a service
rendered. - Answer Allowable Charge
Costs that are reimbursable under a third-party payment formula. - Answer Allowable Costs
The periodic reduction of a debt by regular payments applied to both principal and interest over
a scheduled period. - Answer Amortization of Debt
Correct Answers 100%| Updated
https://www.stuvia.com/user/thinktrek
+1(305) 565-6365
,A depreciation method that allows for larger amounts of depreciation in early years and smaller
amounts in later years. The double declining-balance method is an example. This enables the
owner to receive tax and/or reimbursement benefits more quickly than using the straight line
method. - Answer Accelerated Method of Depreciation
The process of identifying, recording, and communicating information about the financial
position and results of operations of a business entity, using principles designed to facilitate
informed decision-making by the entity's managers as well as by external groups. - Answer
Accounting
Assets = Liabilities + Owners' Equity (capital). This equation states that 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. - Answer Accounting Equation
Amounts owed to suppliers for goods and services. - Answer Accounts Payable
Amounts owed to the facility for services or for the sale of goods. - Answer Accounts
Receivable
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.
(Contrast with cash basis of accounting) - Answer Accrual Basis of Accounting
The total depreciation from the start of the life of a plant asset to any point in time. - Answer
Accumulated Depreciation
Cash and other current assets that can be converted to cash right away (such as marketable
securities and current receivables) divided by current liabilities. A measure of the ability of a
, firm to pay its current liabilities in the very short term (see also CURRENT RATIO). - Answer
Acid-Test Ratio (Quick Ratio)
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 improperly recorded during the
accounting period. Examples include entries for depreciation expense and unused portions of
prepaid expenses. - Answer Adjusting Entries
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. - Answer Administrative
Information System
Summarizing unpaid balances in terms of age groups, such as: currently due, 1-30 days past
due, 31-60 days past due each of the remaining 30-day periods through 151-180 days past due,
and finally past due more than 180 days. This classification may be broken down by type of
debtor. Aging receivables 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. -
Answer Aging of Accounts Receivable
Also called an "aging report," it shows the length of time that various amounts within each
patient's account have been outstanding (not paid) - Answer Aging Schedule
The maximum fee that a third party will use in reimbursing or paying a provider for a service
rendered. - Answer Allowable Charge
Costs that are reimbursable under a third-party payment formula. - Answer Allowable Costs
The periodic reduction of a debt by regular payments applied to both principal and interest over
a scheduled period. - Answer Amortization of Debt
