Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

45 Cards in this Set

  • Front
  • Back
Capital Structure
the org's mix of sources of funding.
agreement under which a health care plan collects a per member per month premium in exchange for providing any of a set of contractually specified services on demand.
current asset, consisting of currency on hand plus bank deposits against which checks can be written.
Cash Budget
the forecast of cash inflows and cash outflows associated with the revenue and spending plans incorporated in the budget as a whole.
Cash conversion cycle
the process through which cash finances operations that generate A/R, which are collected in the form of cash; measured in days.
Cash Equivalent
current asset, consisting of those marketable securites that (1) can be converted into cash quickly and (2) whose values are not sensitive to the rate of interest.
Cash Flow
increase in cash holdings over a period of time.
Cash flow coverage
ratio of available cash flow to debt payment obligations.
Cash flow statement
document showing the flow of cash into and out of the entity over the course of the reporting period.
Cash management statement
an agreement between an org. and a commercial bank, in which the bank agrees, for a fee, to open a line of credit and to manage the short-term investing needs of the org.
Central Bank
a nation's bankers' bank; controls the supply of money and credit.
Certainty Equivalent
an amount, to be recieved with certainty, that a risk-averse person accepts as being just as good as participating in a lottery with a known, but risky, expected pay-off.
Certified Healthcare Finance Professional (CHFP)
professional designation, conferred by the Healthcare Financial Management Association, earned by completion of continuing education and examination.
corporate officer responsible for the entire financial management function.
corporate officer responsible for all information, technology systems.
Collection Period
the average time required to convert A/R into cash; A/R divided by revenue per day.
Commerical Paper
short-term security, sold to the public by a corporation, as a source of short-term financing.
Common-size statement
financial statements reconstructed to show all entries not in dollar terms, but as percentages of total revenues (income statement) or of total assets (balance sheet).
Common stock
equity claim against the org., not entitled to any fixed dividend, but (usually) with a voting right.
Compensating balance
a minimum balance required of org's having loans from or cash management agreements with a commercial bank.
the accumulation of money through the earning of interest on interest.
Comptroller (or controller)
officer responsible for financial record keeping and reporting; reports to the CFO.
attempts to maintain the value of the org. and its assets.
an adjustment to an asset, entered as a negative debit.
the statistical relationship between the movements of two variables, varying from 0 (no relationship) to 1 (exactly the same proportional movement).
cost of production; the market value of the goods and services used to produce a good or service.
Cost Allocation
the distribution of costs from cost centers to other cost centers and to revenue centers, in order to determine the total cost of producing goods or services.
Cost Center
responsibility center charged with controlling its own cost, but without responsibility for generating revenue.
Cost of Goods Sold
the historical cost of the items sold to consumers, as calculated by the inventory valuation method used.
Cost/Volume/Profit Analysis
method of determining at what level of volume the production of a good or service will break even.
Coupon payment
one of the periodic payments of cash to the holder of a bond.
Coupon Rate
the percent of principal paid to a bond holder, via coupon payments, during a year.
a statistical relationship between the variances of two variables, defined as the product of the standard deviations of the two variables multiplied by their correlation.
a right-hand-side accounting entry; used to record liabilities, owners' equity, and revenues.
Current Assets
assets that will cease to exist within one accounting period.
Current Liabilities
liabilites that are due within the current accounting period.
Current Ratio
ratio of all current assets to all current liabilities.
an individual or insitution making securities purchases and sales for his (or its) own account.
a bond that is not secured by a claim on any particular asset or group of assets.
a left-hand-side accounting entry; used to record assets and expenses.
Decision Tree
a pictorial representation of the possible net present values, for some investment, given the possible annual cash flows and their probabilities.
Deferred tax liability
a liability representing the difference between the income tax liability actually incurred and the income tax liabilty that would have been incurred had the same method of depreciation been used for income tax and corporate reporting purposes.
the process of matching the historical cost of an asset to expenses in the periods in which it is used. Straight line or accelerated.
Diagnosis-related group (DRG)
any of the broad categories into which patients are classified on admission to a hospital; DRG classification is the basis for hospital payment under Medicare.
Direct allocation method
cost allocation method that allocates the costs of each cost center directly to revenue centers, without any intermediate allocations to other cost centers.