The Following Are Key Terms in Chapter 17 That Relate

question 21

Short Answer

The following are key terms in Chapter 17 that relate to accounting for health care organizations:
A.Contractual adjustments
B.Capitation fees
C.Charity care
D.Diagnosis-related groups
E.Prospective payment system
F.Health maintenance organizations
G.Performance indicator
H.Third-party payor
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

Understand the role and requirements of the Securities and Exchange Commission concerning corporate financial statements.

Understand the accounting treatment for the issuance of common stock above par value.

Comprehend the concept of legal capital and its significance for corporations.

Identify and record the initial issuance of stock and related expenses.

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Definitions:

Compounded Quarterly

The process of calculating and adding interest to the principal sum of a deposit or loan every three months.

Outstanding Balance

The total amount of money that is still owed on a loan or a line of credit that has yet to be paid.

Semi-annually Compounded

A reiteration of interest calculation and addition to the principal balance every half year, facilitating growth in investments or debt.

Nominal Rate

The stated interest rate of an investment or loan, not adjusting for inflation or the compounding of interest.