Health Medical Homework Help

1. Why do we have double-entry accounting in our U.S. system of GAAP?
2. In a capital account, explain which side (debit or credit) will decrease and which side will increase.  Provide an example (just make one up) of a transaction with a T-account for each side of the transaction showing which type of accounts will receive the debit and credit (e.g., asset, cash, accounts payable, equipment, revenue, etc.).
3. Create a journal entry and a T-Account for each of the following transactions (review the applicable textbook chapter) :

• $15,000 worth of equipment is purchased on credit.
• $40,000 of patient bills from last year are collected in cash.
• $10,000 is received from a managed care company for services to be rendered next year for members
• $20,000 worth of supplies is purchased and paid for in cash.
• $5,000 of accounts payable is paid in cash.
• $30,000 of cash is received from taking out a note with the local bank.
• $10,000 of accounts receivable from last year is received in cash.
• Why do organizations prepare cash flow statements and operating statements?
• $7,000 is paid back on the borrowed note.

4.Why do organizations prepare cash flow statements and operating statements?

Homework Questions Part 2

1. Describe the process an outside auditor uses to analyze an organization’s transactions to ensure accuracy.
2. Describe and discuss a reason for audit failure.
3. Review the National Health Care Billing Audit Guidelines.  Briefly (in 2 – 3 paragraphs) describe the Billing Audit Guidelines (qualifications of auditors, notification of audit, role of audit coordinators, etc). 
4. How does an internal audit vary from an external audit?  Why are internal audits so important?
5. Homework Question Part 3

1.Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?

2.In chapter 8 of our text we learned that a depreciation expense is a non-cash item and is added back to the operating activities of the cash flow statement using the in-direct presentation method.  Briefly discuss why this activity takes place and its impact on operating activities.  (Depreciation – Chapter 10)

3.What equation describes the periodic inventory system?

4.Briefly discuss and compare the four major alternative cost-flow assumptions for inventory.

Homework Question Part 4

1.Place the following assets in order of liquidity: accounts receivable, inventory, cash, marketable securities.

2.Describe the difference between the Excess of Revenues over Expenses and the Increase in Unrestricted Net Assets.

3.Why must organizations disclose their accounting policies in the notes to the financial statements?

4.Describe three different types of benchmarks used in ratios.

5.What are common size ratios?  What is the key number (or numbers) used for comparison for balance sheet ratios and statement of operations ratios?  In what numerical format are these ratios typically presented (or converted to)?  Why?

6.What is the general purpose of liquidity ratios?  Define the three major types of liquidity ratios.  Why might too much liquidity be a problem for an organization?  Why might too little be a problem?

7.What is the general purpose of efficiency ratios?  What are the three major types of efficiency ratios and how are these used?

8.What is a solvency ratio and how is it used?

9.What is a profitability ratio and how is it used?

10. Describe the various types of return-on-investment ratios and how they are used.

Part 5: The rest of these questions must be AT LEAST 2 – 3 paragraphs (at least 250 – 300 words each).

1.How would you assess the major strategies and practices in medical and surgical utilization?

2.What aspects of case management benefit the patients, the providers and hospitals, and the managed care companies?

3.What represents the most challenges for physicians regarding disease management that impacts their level of acceptance or resistance?

4. How has the quality management movement changed from the 1970s to the present?

5.What has been the impact of consumerism regarding plan design and network development?

6. How would you describe the relationship between employers and the managed care industry?

7. Why is informational technology so critical for the success of managed care?

8.What are some of the benefits and disadvantages of the various types of Medicare Advantage plans?

9. What does the legislative history of Medicaid say about the government’s approach to Medicaid over its 40+ year history?