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8 Cards in this Set
- Front
- Back
What is your understanding of the term responsibility accounting?
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Revenue and expense accounts are classified in a manner that permits revenues to be recorded according to the centers responsible for generating them and expenses to be recorded according to the centers responsible for their incurrence
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What is a responsibility center?
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Each organizational unit of the hospital is a responsibility center; i.e. housekeeping
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Distinguish between an expense center and a revenue center.
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Every center is an expense center because all centers incur expenses; housekeeping
Centers that generate revenues through the provision of patient services for which a specific charge is made; radiology |
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What are unassigned expenses?
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Are not charged or assigned to specific department expense centers; examples include depreciation, benefits, insurance, and interest
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Why do you think the AHA publishes a Chart of Accounts for hospitals manual?
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In an effort to promote uniformity
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In connection with revenue accounts in the 4000 series, chart of accounts provides for use of a fifth digit. What purpose is this fifth digit?
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Employed to classify these patient service revenues by type of patient
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In connection with expense accounts in the 6000 series, the chart of accounts provides for use of a fifth and sometimes sixth digits. For what purpose are these employed?
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Fifth and sixth digits are used to be indicators for the natural classification of expenses in each organizational unit
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In the account numbering system set forth in the chart of accounts, how can you distinguish between liability account number and a hospital net asset account number?
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Liability accounts are 2000 through 2500; net assets account is 30100
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