Accounting Chp 10

Front 1

What is your understanding of the term responsibility accounting?

Back 1

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

Front 2

What is a responsibility center?

Back 2

Each organizational unit of the hospital is a responsibility center; i.e. housekeeping

Front 3

Distinguish between an expense center and a revenue center.

Back 3

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

Front 4

What are unassigned expenses?

Back 4

Are not charged or assigned to specific department expense centers; examples include depreciation, benefits, insurance, and interest

Front 5

Why do you think the AHA publishes a Chart of Accounts for hospitals manual?

Back 5

In an effort to promote uniformity

Front 6

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?

Back 6

Employed to classify these patient service revenues by type of patient

Front 7

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?

Back 7

Fifth and sixth digits are used to be indicators for the natural classification of expenses in each organizational unit

Front 8

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?

Back 8

Liability accounts are 2000 through 2500; net assets account is 30100