Topic 7: BUDGETING Flashcards
(36 cards)
Process of keeping an organization running efficiently within its allotted budget.
Fiscal management & Budgeting
Property
Fully paid equipments
Source of collateral
Assets
Debts
Liabilities
What is left after debt were paid;
Difference between the asset and the
liabilities
Net Worth
Debts payable to individuals who have provided products
Accounts Payable
Represent the value of debt that are held for payment in the future
Accrued Expenses
Promises to pay a certain amount of money at a certain time in the future
Notes Payable
Income without expenses deducted yet
Gross Income
Expenses have already been deducted from the gross income
Net Income
Money spent to produce/purchase a service or product that is sold
Expense
Expenses exceed revenue
Loss
Income tax deduction that allow the taxpayer to recover the costs owned property or other assets.
Depreciation
Expenses for delivering services
Direct Costs
Types of indirect cost
Variable, Fixed, & Semi-fixed
Physical therapist’s ability to produce income by patient care, including evaluation, treatment planning and patient education
Productivity
Time that an employee’s availability to be productive is infringed upon
Down Time
The highest paid professional in the department;
Not usually involved in direct patient care and is mostly responsible for staff supervision
Director
majority of a director’s responsibility are ______ functions
Managerial
They are necessary to assist in the professional and business activities of the PT department
Clerical, reception, general office and secretarial personnel
Set of financial reports that generally include, prepared with aid of a professional such as Certified Public Accountant (CPA)
Financial Statements
First statement in the set of financial statement, a statement of an organization’s financial condition
Balance sheet
Zero net income
Breakeven
A report on the financial performance of an organization over a specific period of time
Income statement
A mandatory part of an organizations financial statement;
It reports on the cash that flows through the business from core operations, financing or investing
Cash flow statement
