Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
Financial Accounting vs. Managerial Accounting |
|
|
|
3 Primary Financial Statements |
-balance sheet -income statement -statement of cash flows |
|
|
**Assets Calculation |
assets = liabilities + owner's equity |
|
|
Balance Sheet |
Provides a real-time view of the financial position of a business. It discloses the resources owned by an entity (practice; department) and the claims against those resources. Snapshot of financial health of the company at that very moment. |
|
|
Assets |
-cash -accounts receivable ---money that you will be getting in the future (e.g., from Medicare for a service already given) -inventory -furniture & fixtures -equipment -real estate |
|
|
Liabilities |
-accounts payable ---money that you will have to pay out (e.g., gas bill, hearing aids because you pay 30-90 days after you place the order) -salaries payable -short-term notes -long-term notes |
|
|
Owner's Equity |
-capital stock ---owner equity of the business - has a value (may not necessarily be what you can sell it for) -retained earnings |
|
|
**Working Capital Calculation |
Working Capital = Current Assets - Current Liabilities
-measures ability to cover your obligations/bills -should be a positive number -AuD practices usually have minimal working capital needs -slow payment from 3rd party payors can put a strain on liquidity |
|
|
*Current Ratio Calculation |
Current Assets / Current Liabilities
-expresses working capital in a ratio form -no set rule for audiology practices |
|
|
*Working Capital Needs Calculation |
-average monthly operating expenses * 1.5 + (5000 * # of physical locations) |
|
|
Income Statement |
-profit & loss -provides summary of a business' performance over a period of time, detailing revenues, expenses, and net income |
|
|
Income Statement tells you/things to look out for... |
|
|
|
Statement of Cash Flows |
|
