CPAT Prep Formulas And Formula Definitions

Explanation
The term "Average Daily Census" refers to the average number of inpatients that are present in a hospital on a daily basis over a specific period of time. It is a measure used to assess the occupancy rate and the number of patients being cared for in a hospital. It helps in determining the resources and staffing needed to provide adequate care to the patients.

Explanation
Average Daily Revenue refers to the average amount of revenue or charges generated for a specific period of time, typically calculated on a daily basis. This metric is useful for businesses to measure their daily financial performance and track revenue trends over time. It helps in understanding the average revenue generated each day, which can be used for budgeting, forecasting, and making informed business decisions.

Explanation
This answer refers to the calculation of the average number of days it takes for a company to collect payment from its customers for goods or services sold on credit. It is a measure of the efficiency of the company's accounts receivable management and indicates how quickly the company is able to convert its accounts receivable into cash. By dividing the total accounts receivable by the average daily revenue, this metric provides insight into the company's cash flow and liquidity position.

Explanation
Census refers to the number of patients in the hospital at a particular point in time. It is a count or survey conducted to gather information about the population or a specific group. In this context, the census is used to determine the number of patients present in the hospital at a given moment. It helps in assessing the hospital's capacity, managing resources, and planning for patient care.

Explanation
Percentage of occupancy is a measure that indicates the extent to which a healthcare facility is being utilized. It is calculated by dividing the actual patient days by the maximum patient days as determined by the bed capacity. This ratio provides insight into the efficiency and utilization of the facility during a specific period of time. A higher percentage of occupancy indicates that a larger proportion of the beds are being utilized, while a lower percentage suggests that there is more capacity available.

Explanation
The correct answer is "AVERAGE DAILY CENSUS." The explanation is that to calculate the average daily census, you need to divide the sum of total patient days in a month by the total number of days in that month. This will give you the average number of patients present in the hospital on a daily basis during that month.

Explanation
The correct answer is "PERCENTAGE OF OCCUPANCY" because the term "CENSUS" typically refers to a count or survey of a population or group. In this context, "TOTAL BEDS" is likely referring to the total number of beds available in a certain location or facility. The "PERCENTAGE OF OCCUPANCY" would then represent the proportion or percentage of those beds that are currently occupied. This information is often used to assess the utilization or demand for the beds and can be important for planning and resource allocation purposes.

Explanation
The given answer, "AVERAGE DAILY REVENUE," is the correct answer because it accurately describes the calculation being performed in the equation. The equation is dividing the total charges or revenue for a certain number of days by the total number of days, which gives the average daily revenue.

Explanation
The correct answer is "AVERAGE DAYS OF REVENUE IN ACCOUNTS RECEIVABLE". This is because the formula for calculating the average daily revenue is dividing the average days of revenue in accounts receivable by the accounts receivable at a specific time.

Explanation
Days outstanding is another name for average days of revenue in accounts receivables. This term refers to the average number of days it takes for a company to collect payment from its customers after a sale has been made. It is a key metric used to assess the efficiency of a company's accounts receivable management and cash flow. By monitoring the days outstanding, businesses can identify any issues with timely payment collection and take appropriate actions to improve their cash flow.