Chapter 8 Hsmg 303

total amount of functioning equipment in a healthcare organization

total amount of equipment dedicated to providing patient care

Sum of a healthcare organization's investment in current assets

Sum of a healthcare organization's investment in outside endeavors

inventories

prepaid expenses

salaries and wages

(a) and (b)

How quickly an asset can be converted into cash

how quickly a liability can be paid off

the rate at which a healthcare organization disbursesits cash

the rate at which a hospital sells its current assets

Organizations are able to pay their employees and vendors on time, thereby maintaining a positive relationship.

Organizations have sufficient resources to repay loans and are therefore creditworthy.

Both of the above

None of the above

A governmental entity through taxes and bonds

Philanthropy or tax-exempt bonds

The sale of stock

The state legislature

The sale of stock

Philanthropy or tax exempt bonds

The state legislature

A governmental entity, in the form of taxes and

Trade credit

equity

Deb

all of the above

Borrowing money from a loan company to finance the purchase of the working capital

Borrowing money from a vendor by delaying payment to the vendor for goods or services already received

Using donated money to finance working capital needs

None of the above

An organization can receive a 5 percent discount if it pays within 15 days.

An organization can receive a 15 percent discount if it pays within 5 days.

An organization can receive a 30 percent discount if it pays between days 5 and 15.

If an organization pays on day 30, it can receive a discount of 5 to 15 percent.

The difference between the amount of money used internally and the amount of money used for external endeavors

The difference between liabilities paid in cash and liabilities financed with equity

The difference between cash receipts and cash disbursements

None of the above

For the expected demand to pay employees and vendors in cash    

For emergencies and unexpected purchases

For the unexpected demand for cash when a vendor offers a price reduction the organization does not want to pass up    

 All of the above

Consolidate current assets 

Determine the amount of income that investments will generate    

 determine the amount of income that trade credits will save organizations    

Convert current assets into cash    

Evaluating line items by looking at percentage changes over time  

Comparing important line items to a base number

computing and showing relationships between important line items  

None of the above

Computing and showing relationships between important line items    

Comparing important line items to a base number    

Evaluating line items by looking at percentage changes over time

None of the above

How long an organization could meet its obligations if cash receipts were discontinued    

an organization's ability to meet its financial obligations    

the average amount of time that passes before a current liability is paid    

The average amount of time an insurance company takes to pay a claim

the average amount of time an insurance company takes to pay a claim    

The average amount of time that passes before a current liability is paid    

how long an organization could meet its obligations if cash receipts were discontinued

an organization's ability to meet its financial obligations

$3,125    

$12,500    

$62,500    

$4,230

146 percent on day 16; 9.7 percent on day 30

744.9 percent on day 16; 30.6 percent on day 30

292 percent on day 16; 9.7 percent on day 30

146 percent on day 16; 19.5 percent on day 30

$545,000.00

$2,082,205.50

$776,485.15

$1,296,871.23 

The time is will take a hospital to build a building using cash.

The period is takes the CFO to close the financial accounting records.

The process of converting resources represented by cash outflows into services and products represented by cash inflows.    

The process of converting accounts receivable into money in the bank.