HCA

Accounting Equation

Assets = Liabilities + Owner's Equity.

Annualization

The process of adjusting financial data to annual figures, often from a shorter reporting period.

Accounts Payable

Liability for expenses incurred but not yet paid.

Accrued Expenses Payable

Liabilities that have been incurred but not yet paid, such as salaries and wages.

Accrued Revenue

Income that has been earned but not yet received.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been expensed since it was acquired.

Assets

Economic resources owned by an entity that are expected to provide future benefits.

Bad Debt Expense

An estimate of accounts receivable that will not be collected.

Balance Sheet

Financial statement that summarizes an entity's assets, liabilities, and owner's equity at a specific point in time.

Cash Flow Statement

Financial statement that shows the inflow and outflow of cash over a period.

Debits

Entries on the left side of an account, which increase assets and expenses.

Credits

Entries on the right side of an account, which increase liabilities, net assets, and revenues.

Deferred Revenue

Payment received before the goods or services have been delivered or rendered.

Electronic Funds Transfer (EFT)

An electronic transfer of funds from one bank account to another.

Gross Revenue

Total revenue calculated at 100% of charges before deductions like allowances and bad debts.

Income & Expense Statement

Financial report summarizing revenues and expenses for a specific period.

Internal Controls

Procedures implemented by an organization to safeguard assets and ensure accurate reporting.

Liquidity

A measure of how quickly an asset can be converted into cash.

Long-Term Liabilities

Obligations not due within one year.

Matching Principle

Accounting principle that dictates expenses be matched with revenues earned in the same period.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future.

Retained Earnings

Accrued profits that are reinvested into the business rather than distributed to shareholders.

Trial Balance

A worksheet that lists all ledger accounts and their balances to verify that debits equal credits.

Year-To-Date (YTD)

Cumulative total from the beginning of the fiscal year to the current date.

Accrual Accounting

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of cash exchange.

Charity Care

Free or discounted care provided to indigent patients.

Aging Schedule

Report that shows accounts receivable broken down by the length of time outstanding.

Expensed Items

Costs incurred for goods and services that have been consumed.

Contractual Allowance

The difference between the billed amount and the amount expected to be collected from payers.

Health Care Accounting

The specialized accounting practices tailored for healthcare organizations.

Organizing

Determining how tasks will be divided and coordinated within an organization.

Negotiated Rate

Agreed-upon payment amounts between providers and payers.

Risk Management

Strategies implemented to minimize financial loss due to unforeseen events.

Financial Statement Analysis

The process of evaluating and interpreting financial statements to make informed business decisions.