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The new accountant informs the administrator that to simplify things, he has incorporated all purchases that will be paid for the next few years into the accounts payable journal. The administrator should
. - ✔✔c. begin a search for a new accountant The administrator seeks to be licensed without having to meet all the conditions new entrants would have to meet. He/she seeks to be. - ✔✔grandpersoned Normally, courts of appeal do not have. - ✔✔original jurisdiction. The administrator decides to offer newer forms of physical therapy that reduce use of currently used physical therapy methods. He/she has the current methods. - ✔✔cannibalized Annually, or more often, inventory, to determine beginning inventory, should be. - ✔✔c. physically counted The quick ratio analysis of current assets is the current ratio. - ✔✔more rigorous than. is a measure of how well a company can meet its short-term financial liabilities. - ✔✔quick ratio analysis
- Also known as the acid-test ratio, it can be calculated as follows: (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. It is an important measure of liquidity because short-term liabilities are due within the next year. - ✔✔current ratio
The main difference between the current ratio and the quick ratio - ✔✔Quick Ratio offers a more conservative view of the company's ability to meets its short-term liabilities with its short-term assets because it does not include inventory and other current assets that are more difficult to liquidate An accounting principle requiring the facility to correspond the revenues it earns in a given period to the expenses it incurred during that same period is the. - ✔✔d. matching principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received. - ✔✔The conservatism principle refers to the ability for financial statements, footnotes and/or supplemental schedules to provide a comprehensive and clear description of a company's financial position. - ✔✔Adequate disclosure principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled. - ✔✔The materiality principle The chain "buys back" a portion of its outstanding stock by giving one new share in place of each four previously held shares. The chain has accomplished a/an. - ✔✔a. reverse split In general, the ownership patterns for U.S. nursing facilities in 1999. - ✔✔c. varied widely from state to state The accrual accounting approach matches revenues and expenses. - ✔✔for each time period. A verdict, given by a jury at the direction of a judge is known as. - ✔✔b. directed verdict is a pre-trial procedure in a lawsuit in which each party, through the law of civil procedure, can obtain evidence from the other party or parties by a request for answers to interrogatories, request for production of documents, request for admissions and depositions. Discovery can be obtained from non- parties using subpoenas. - ✔✔discovery
The range of employee activities held by the courts to be the legal responsibility of the employer, essentially any act performed in the process of carrying out one's duties, is known as. - ✔✔a. scope of employment Statutes are laws. - ✔✔d. passed by legislatures Correct A facility with long-term debt of $4,000,000 and a total equity of $3,000,000 has a debt to equity ratio of which is the industry average. - ✔✔a. 1.33 considerably above Correct Debts/Total Equity = Debt to Equity Ratio Under the accrual system of accounting, revenues are recorded in the time period in which they are and expenses are recorded when they are. - ✔✔b. earned - incurred Trends and patterns in the operation of a nursing facility can best be obtained by doing. - ✔✔ratio and vertical analyses over time. is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time is studied to check whether they are improving or deteriorating. - ✔✔ratio analyses is a method of financial statement analysis in which each entry for each of the three major categories of accounts, or assets, liabilities and equities, in a balance sheet is represented as a proportion of the total account. - ✔✔Vertical analysis Allowing the facility to accurately measure revenues earned after expenses have been paid or losses incurred by matching revenues and expenses for each time period is the advantage of the system of accounting. - ✔✔accrual Records of transactions that do not fit into any of the other journals go into. - ✔✔b. the general journal
Congress' purpose for passing accelerated depreciation was to of new facilities. - ✔✔b. encourage more building The income statement shows whether revenues were sufficient to cover. - ✔✔expenses Using several differing depreciation schedules for a single piece of equipment is as an accounting behavior. - ✔✔quite acceptable. Bills from suppliers of foodstuffs or office supplies or janitorial services contractors are normally classified as among the. - ✔✔current liabilities. In accounting, income does not refer to the funds coming into the facility, but to. - ✔✔a. revenues minus expenses An application to the court asking for an action favorable to one's side is. - ✔✔a motion The amount of money the administrator may have to work with is. - ✔✔current assets - current liabilities A market that is so competitive that all its participants have virtually no control over price is known as
. - ✔✔perfect competition. is the subset of the market on which a specific product is focused. Defines as the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. It is also a small market segment. - ✔✔a. niche marketing the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers. - ✔✔perfect competition
Statutes are laws. - ✔✔d. passed by legislatures Things owned by the facility are normally referred to as. - ✔✔assets The coming into court of a person being summoned to do so is known as a(an). - ✔✔appearance The facility has issued a debt obligation to pay a specific amount on a stated date. The facility has issued
. - ✔✔bonds a letter issued by a bank to another bank (typically in a different country) to serve as a guarantee for payments made to a specified person under specified conditions. - ✔✔letters of credit A legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. - ✔✔notes are tradable assets of any kind. They can be cash, evidence of an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument. - ✔✔Financial instruments A method of determining the optimum amount of materials that needs to be ordered on a regular basis is known as the. - ✔✔c. economic order quantity coordination and supervision of the supply, storage, distribution, and recording of materials to maintain quantities adequate for current needs without excessive oversupply or loss. - ✔✔inventory control The financial statements are the summary of all transactions made during a particular and their effect on the of the facility. - ✔✔time period - finances Allowing the bookkeeper to destroy vouchers showing payments made for meals to employees once these are recorded may violate the concept. - ✔✔a. objective evidence
Ratios, to be truly useful, should be. - ✔✔compared with industry averages over time. The administrator asks the business manager to measure the return the facility has earned on the funds invested in it. He/she wants the manager to calculate the. - ✔✔c. return on owners equity (ROE) Capital equipment are assets that will be used by the facility to provide services for. - ✔✔c. more than one year Trends and patterns in the operation of a nursing facility can best be obtained by doing. - ✔✔c. ratio and vertical analyses over time Conduct giving rise to a cause for legal action is. - ✔✔actionable a formal charge or accusation of a serious crime. - ✔✔indictment a formal judgment on a disputed matter. - ✔✔adjudication Records of transactions that do not fit into any of the other journals go into. - ✔✔b. the general journal A Latin phrase meaning to stand by earlier court decisions is. - ✔✔a. stare decisis a matter that has been adjudicated by a competent court and may not be pursued further by the same parties. - ✔✔b. res judicata the principle that the occurrence of an accident implies negligence. - ✔✔c. res ipsa loquitur (Latin: "let the master answer") is a US legal doctrine which states that, in many circumstances, an employer is responsible for the actions of employees performed within the course of their employment.
Decisions by the usually become the standard of practice in financial management of the nursing facility - ✔✔American Institute of Certified Public Accountants. Telling the accountant not to record overtime paid from the cash box to employees working weekends is violating the concept. - ✔✔full disclosure. Regulations are the official interpretations of the intent of laws. Regulations are written by the. - ✔✔executive branch. For in-facility services such as physical therapy it is important to calculate the cost in order to better analyze the cost effectiveness of such services. - ✔✔b. break-even In order to develop a reasonable estimate of income and expenses for a coming time period it is important to do both a(n) budget and a budget. - ✔✔expense & revenue. Under double-entry bookkeeping, when a bill is sent to Ms. Jones for $3,000 for the past month's care, the bookkeeper would normally record $3,000 in the debit column as an increase in assets and. - ✔✔a. record $3,000 on the credit side as an increase in revenue The facility has issued a debt obligation to pay a specific amount on a stated date. The facility has issued
. - ✔✔bonds A person under the temporary employ of another person, such as a facility nurse being temporarily directed by an attending physician visiting a patient, is the concept of. - ✔✔borrowed servant. the principle that the occurrence of an accident implies negligence. - ✔✔res ipsa loquitor Pieces of paper indicating money owed to or by the facility, bank statements, and similar pieces of paper or its electronic equivalent are known as. - ✔✔source documents.
A market that is so competitive that all its participants have virtually no control over price is known as
. - ✔✔c. perfect competition The primary purpose of the Generally Accepted Accounting Principles is to. - ✔✔b. maximize comparability of financial statements of different organizations An administrator who instructs the accountant to begin reporting facility finances by recording all expenditures and all receipts as they actually occur has decided to use the system of accounting. - ✔✔cash Written itemized statements of resident fund transactions and balances must be provided to the residents at least. - ✔✔quarterly A Latin phrase meaning to stand by earlier court decisions is. - ✔✔a. stare decisis The full disclosure concept requires that all financial information must be shown in the. - ✔✔a. financial records The amount of money the administrator may have to work with is. - ✔✔a. current assets - current liabilities The administrator seeks to be licensed without having to meet all the conditions new entrants would have to meet. He/she seeks to be. - ✔✔grandpersoned Lines of credit, revolving bank loans, pledging and factoring of accounts receivable are all examples of . - ✔✔possible sources of short-term financing. A revision of an accounting forecast or assumption about the facility's expected or experienced performance is a/an. - ✔✔change in accounting estimate. The new administrator in a private pay for-profit facility is told by the accountant that the accounts receivable are $105,800 and the net operating revenues are $334,000. Upon calculating the average
The accountant, upon successfully bringing the expense and revenue accounts to zero, has successfully
. - ✔✔c. closed the books The frozen food contractor arrives, places the order in the freezer, checks off the receiving slip, hands it to the appropriate kitchen employee who thanks the contractor and hands the receiving slip and purchase order copy to the director of food services. The administrator, on observing this, should.
- ✔✔c. be upset At the end of each year for facilities participating in Medicare a Medicare Cost Reconciliation settlement occurs in which. - ✔✔c. the facility receives or pays back money To safeguard the finances of a facility, procedures should be arranged to establish a system of so that employees review each other's financial activities. - ✔✔c. checks and balances Which of the following is not a primary financial statement? - ✔✔journal Journals are the place that transactions are recorded; they are the books of. - ✔✔a. first
- original Things owned by the facility are normally referred to as. - ✔✔assets Instructing the finance manager to record assets at current market value and to not record patient bills expected to become uncollectible violates the concept. - ✔✔consistency
