Funding

Front 1

Capital Structure

Back 1

the org's mix of sources of funding.

Front 2

Capitation

Back 2

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.

Front 3

Cash

Back 3

current asset, consisting of currency on hand plus bank deposits against which checks can be written.

Front 4

Cash Budget

Back 4

the forecast of cash inflows and cash outflows associated with the revenue and spending plans incorporated in the budget as a whole.

Front 5

Cash conversion cycle

Back 5

the process through which cash finances operations that generate A/R, which are collected in the form of cash; measured in days.

Front 6

Cash Equivalent

Back 6

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.

Front 7

Cash Flow

Back 7

increase in cash holdings over a period of time.

Front 8

Cash flow coverage

Back 8

ratio of available cash flow to debt payment obligations.

Front 9

Cash flow statement

Back 9

document showing the flow of cash into and out of the entity over the course of the reporting period.

Front 10

Cash management statement

Back 10

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.

Front 11

Central Bank

Back 11

a nation's bankers' bank; controls the supply of money and credit.

Front 12

Certainty Equivalent

Back 12

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.

Front 13

Certified Healthcare Finance Professional (CHFP)

Back 13

professional designation, conferred by the Healthcare Financial Management Association, earned by completion of continuing education and examination.

Front 14

CFO

Back 14

corporate officer responsible for the entire financial management function.

Front 15

CIO

Back 15

corporate officer responsible for all information, technology systems.

Front 16

Collection Period

Back 16

the average time required to convert A/R into cash; A/R divided by revenue per day.

Front 17

Commerical Paper

Back 17

short-term security, sold to the public by a corporation, as a source of short-term financing.

Front 18

Common-size statement

Back 18

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).

Front 19

Common stock

Back 19

equity claim against the org., not entitled to any fixed dividend, but (usually) with a voting right.

Front 20

Compensating balance

Back 20

a minimum balance required of org's having loans from or cash management agreements with a commercial bank.

Front 21

Compound

Back 21

the accumulation of money through the earning of interest on interest.

Front 22

Comptroller (or controller)

Back 22

officer responsible for financial record keeping and reporting; reports to the CFO.

Front 23

Conservation

Back 23

attempts to maintain the value of the org. and its assets.

Front 24

Contra-asset

Back 24

an adjustment to an asset, entered as a negative debit.

Front 25

Correlation

Back 25

the statistical relationship between the movements of two variables, varying from 0 (no relationship) to 1 (exactly the same proportional movement).

Front 26

Cost

Back 26

cost of production; the market value of the goods and services used to produce a good or service.

Front 27

Cost Allocation

Back 27

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.

Front 28

Cost Center

Back 28

responsibility center charged with controlling its own cost, but without responsibility for generating revenue.

Front 29

Cost of Goods Sold

Back 29

the historical cost of the items sold to consumers, as calculated by the inventory valuation method used.

Front 30

Cost/Volume/Profit Analysis

Back 30

method of determining at what level of volume the production of a good or service will break even.

Front 31

Coupon payment

Back 31

one of the periodic payments of cash to the holder of a bond.

Front 32

Coupon Rate

Back 32

the percent of principal paid to a bond holder, via coupon payments, during a year.

Front 33

Covariance

Back 33

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.

Front 34

Credit

Back 34

a right-hand-side accounting entry; used to record liabilities, owners' equity, and revenues.

Front 35

Current Assets

Back 35

assets that will cease to exist within one accounting period.

Front 36

Current Liabilities

Back 36

liabilites that are due within the current accounting period.

Front 37

Current Ratio

Back 37

ratio of all current assets to all current liabilities.

Front 38

Dealer

Back 38

an individual or insitution making securities purchases and sales for his (or its) own account.

Front 39

Debenture

Back 39

a bond that is not secured by a claim on any particular asset or group of assets.

Front 40

Debit

Back 40

a left-hand-side accounting entry; used to record assets and expenses.

Front 41

Decision Tree

Back 41

a pictorial representation of the possible net present values, for some investment, given the possible annual cash flows and their probabilities.

Front 42

Deferred tax liability

Back 42

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.

Front 43

Depreciation

Back 43

the process of matching the historical cost of an asset to expenses in the periods in which it is used. Straight line or accelerated.

Front 44

Diagnosis-related group (DRG)

Back 44

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.

Front 45

Direct allocation method

Back 45

cost allocation method that allocates the costs of each cost center directly to revenue centers, without any intermediate allocations to other cost centers.