Card Set Information
What are 5 things that fundamental documents accomplish?
1. Drive future decisions
2. Advertise to public what they can expect in clear, concise statement
3. Guide internal politics
4. Provide corporate identity consistent with community needs
5. Inform members of organization on standards for decision making
What are 4 things mission statement should specifiy?
Who we are
2. Community (geographic, demographic, financial group)-
who we serve
3. Service provided-
what sets us apart from competition
Broad mission vs narrow mission of financing:
1. Broad mission
: provide services to paying public at lowest price consistent with long term financial needs & provide charity care to community
2. Narrow mission
: services will be provided to all those who demonstrate sufficient resources
Mission, vision, values --> ____ --> _____ --> _____
strategic plans --> long range financial plans
--> environmental assessment
consistent guide to be followed under given set of circumstances
methods used to put policies into action in day to day operations
What are 3 objectives of P & P?
1. Enunciate corporate mission
2. Delineate ethical, strategic, and organizational parameters
3. Framework for mgmt decision making
5 basic elements of P & P manual?
1. scope of services
2. facility operations
3. employment related policy & procedures
4. emergency preparedness, safety, & infection control
5. pt care/best practices
Job cycle: ___ --> ____ --> _____ --> _____ --> ____ --> _____ -->
objectives --> job ID --> job analysis --> job description --> performance mgmt --> outcomes -->
: what needs to be done
: who/what will do job
: when/where job will be done
: how job will get done
: how well job is done
: why did we go through all of this
What are 3 elements of performance standards?
1. how duties are performed
2. how performance will be measured
3. benchmarks for performance
What are 4 potential outcomes of review process?
2. Rewards- monetary, promotion, recognition
What are 4 things commonly included in financial plan?
2. Goals for spending & saving future income
3. Allocates future income to various expenses
4. Reserves some income for short & long-term savings
What are 4 fiscal life stages?
What are 4 things that affect foundation fiscal stage?
What occurs during conservation fiscal stage?
Make decisions differently bc older & have less time to make up for mistakes
What occurs during distribution fiscal stage?
Senior part of life; give gifts, donations, wills/trusts
3 ways to earn money:
: marriage, inheritance, gift
2. Effort of work
3. Make your money work for you
: savings, investing, buy stocks, savings
: Time bound
Financial planning cycle: ____ --> ____ --> ____ --> ______ -->
Goal --> assess/analyze --> solutions --> implement --> review/revise -->
Process by which businesses adjust future expectations based on recent actual performance resulting in production of an updated forecast document
What are 2 other names for income statement?
budget sheet, P & L (profit & loss) statement
-snapshot of financial strength & capabilities of specific point in time
states what business is worth
: asset that can be converted into cash within a year
: may take a long time to convert into cash (ex: building, furniture, equipment)
: thing you know you'll pay for within the year
: loans, mortgages, etc
what owners have stake in the business
Assets = ____ + ____
liabilities + owner's equity
Statement of cash flow:
-reports inflows & outflows of cash
-shows changes over time
-tells you about health of company
Assets & expenses: ___ credit & ____ debit
decrease credit, increase debit
Liabilities, income, & equity/capital: ____ credit & ____ debit
increase credit, decrease debit
5 elements of accounting:
1. asset accounts
2. liability accounts
3. equity accounts
4. income accounts
5. expense accounts
: accounts payable
: accounts receivable
: 5 elements of accounting
income & expenses recorded when money is received or dispersed
-fails to match revenues & expenses
-income reported when sale is made whether or not you received money for it
-expenses reported when goods received, not when payment made
Cash flow tracking vs accrual:
-cash flow is better for recording income & expenses except for long-term revenues
Day sales outstanding= ___ /____ x ____
What does it measure?
Accounts receivable / invoiced sales in period x days in period
Measures how long it takes to get paid for a service delivered