Exam (elaborations)
CMOM Module 3| with Questions & Correct Verified Answers
- Course
- Institution
CMOM Module 3| with Questions & Correct Verified Answers
[Show more]
Seller
Follow
Content preview
CMOM Module 3| with Questions &Correct Verified Answers
Accrual Based Accounting - ✔-record income when the services occur, not when you
receive payment
-Record an expense when you receive goods or services, even though you may not pay for
them until later
Balance Sheet - ✔a financial picture of the practice at a specific point in time
Billing Cycle - ✔the period between billings for products and services
Capital - ✔money invested in the practice by owners
Capitated Income - ✔Payments made by contracted managed care that are made based
on covered lives
-per member per month (PMPM)
Cash Based Accounting - ✔-Record income only when you receive cash from
customers -record an expense only when you write the check to the vendor
Charge Off - ✔Accounts Receivable that will likely remain uncollectible and will be written
off as a collection or bad debt
-appears as an expense on a practice's income statement
Current Liabilities - ✔-payable within one year
-examples are accounts payable and payroll taxes payable
, Long Term Liabilities - ✔-What you owe creditors but is not due within one year
Depreciation - ✔An annual write-of of a portion of the cost of fixed assets, such as
vehicles and equipment
-listed among the expenses on income statement
Direct Expense - ✔expenses that are directly related to a cost center
Example: A radiology department requires film, technicians, x-ray equipment and maintenance.
Without a radiology department there would be no need for film or technicians
Period Expenses - ✔expenses incurred but paid over a period of time, such as mortgage
or loan payments
Fixed assets - ✔assets that are generally not converted to cash within one year, such
as equipment and vehicles
Fixed expenses - ✔expenses that do not vary with the volume of services, such as
rent, salaries, utilities and loan payments
Gross - ✔refers to the total amount made as a result of some activity, such as charges
or collections
Income Statement - ✔a record of the financial performance of a business over a period
of time
-it lists your income, expenses and net profit (or loss)
-Net profit (or loss) is equal to your net income minus your expenses
-also knows as a Profit and Loss Statement
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KenAli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.79. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now