The 4 C's of accounting

• Cost

• Cash

• Capital

• Control

• Coding

_____its measurement and minimization are activities essential to the financial success of all healthcare organizations. Example: cost of medical prescription, cost of investigations, consultation fee.

• Cost

• Capital

• Control

• Cash

_____lubricates the wheels of a business and ensures the smooth operation.

  · Money spent on purchasing pay utilities

  · Money spent on the purchase of consumables

• Cost

• Capital

• Control

• Cash

_____ of physical and financial resources to ensure its wise employment and its protection for future use; includes the activities of the accountant and the financial manager such as:

  · Budgeting and resource planning (paying staff and pensioners, income collection, paying for services and good, etc.).

  · Managing of financial operations

  · Financial decisions

  · Capital investment decisions

  · Financial reporting

• Cost

• Capital

• Control

• Cash

_______ the funds used to acquire land, buildings and equipment

  · Money spent on the purchase on the land in which the health facility is located

  · Money spent on building the health facility complex

  · Money spent on the purchase of equipment in the health facility complex.

• Cost

• Capital

• Control

• Cash

Sole proprietorships have several advantages over other business entities because:

• Easy to form

• Subject to few regulations

• No corporate income taxes

• Owners enjoy sole control of the business profits.

• All of the above

Sole proprietorships have several disadvantages over other business entities because:

• Limited life

• Unlimited liability

• Difficult to raise capital

• Difficult to transfer ownership

• All of the above

A corporation is a legal entity, organized under state laws, whose investors purchase shares of stock as evidence of ownership in it. Which of the following are disadvantages of a Corporation?

• Double (or triple) taxation for investor-owned corporations

• Have rigid formalities and protocols to follow

• The are time-consuming

• Cost of formation and reporting

• All of the above

Limited Partnerships (LP):

• are Hybrids

• General partners have control of the LP

• Limited Partners are liable only for their initial contribution

• Not commonly used by healthcare providers

• All of the above

Limited liability partnership (LLP):

• Partners share general business liability

• Partners are liable only for their own malpractice actions

• are Hybrids

• All of the above