HCAD 5301 EXAM 5 QUESTIONS AND ANSWERS
patient ledger - CORRECT ANSWER✅✅account of the charges rendered to an individual patient
general ledger - CORRECT ANSWER✅✅technically, the record of all the firm's transactions; the term
often refers to the fixed and collective assets, such as depreciation, that must be allocated to
operational units
pro forma - CORRECT ANSWER✅✅a forecast of financial statements establishing the future financial
position of the organization for a given set of operating conditions of decisions
gross revenue - CORRECT ANSWER✅✅An entry to the patient ledger of the charge for a specific
healthcare service; no longer a meaningful measure.
net revenue - CORRECT ANSWER✅✅Actual revenue received, as opposed to that initially posted; equal
to gross revenue minus adjustments for bad debts, charity, and discounts to third parties ("contractual
allowance").
bad debt - CORRECT ANSWER✅✅Cost for patients who were expected to pay for care but did not.
nonoperating revenue - CORRECT ANSWER✅✅Income generated from non-patient-care activities,
including investments in securities and earnings from unrelated businesses.
managerial accounting - CORRECT ANSWER✅✅a process of restructuring transaction data to support
monitoring, planning, setting expectations, and improving the performance of accountability centers.
operating budget - CORRECT ANSWER✅✅a forecast of expected income and expenses developed by
finance and used to assess corporate or major service line performance
new programs and capital budget - CORRECT ANSWER✅✅expected capital expenditures and new
programs accepted by the governing board, with their implications for the operating and cash budgets
by period and accountability center.
patient ledger - CORRECT ANSWER✅✅account of the charges rendered to an individual patient
general ledger - CORRECT ANSWER✅✅technically, the record of all the firm's transactions; the term
often refers to the fixed and collective assets, such as depreciation, that must be allocated to
operational units
pro forma - CORRECT ANSWER✅✅a forecast of financial statements establishing the future financial
position of the organization for a given set of operating conditions of decisions
gross revenue - CORRECT ANSWER✅✅An entry to the patient ledger of the charge for a specific
healthcare service; no longer a meaningful measure.
net revenue - CORRECT ANSWER✅✅Actual revenue received, as opposed to that initially posted; equal
to gross revenue minus adjustments for bad debts, charity, and discounts to third parties ("contractual
allowance").
bad debt - CORRECT ANSWER✅✅Cost for patients who were expected to pay for care but did not.
nonoperating revenue - CORRECT ANSWER✅✅Income generated from non-patient-care activities,
including investments in securities and earnings from unrelated businesses.
managerial accounting - CORRECT ANSWER✅✅a process of restructuring transaction data to support
monitoring, planning, setting expectations, and improving the performance of accountability centers.
operating budget - CORRECT ANSWER✅✅a forecast of expected income and expenses developed by
finance and used to assess corporate or major service line performance
new programs and capital budget - CORRECT ANSWER✅✅expected capital expenditures and new
programs accepted by the governing board, with their implications for the operating and cash budgets
by period and accountability center.
