Health Care Accounting

Upon successful completion of this course, participants will be able to:

Chapter 1

• Understand why health care is one of the most examined industries in the country.
• Cite the financial statements used by each of the different types of health care entities.

Chapter 2

• Note the accounting principles that apply to health care entities.
• Describe the nature of the accounting cycle.
• Note why the out-of-balance concept harms a system of accounting.
• Recognize the source of the trial balance.
• Discuss how the extended trial balance is used.
• Recognize the characteristics of the accrual basis of accounting.
• Identify the formula underlying the balance sheet.

Chapter 3

• Note the criteria that define a not-for-profit entity.
• Describe the proper accounting for all variations on a pledge.
• Recognize the nature of a performance indicator.
• Recognize the nature of net assets for a not-for-profit entity.

Chapter 4

• Recognize the key characteristics of a fund.
• Identify the key components of net position in a financial statement.

Chapter 5

• Describe the uses to which a bank reconciliation can be put.
• Cite the elements of a bank statement.
• Recognize the various reconciliation problems that may be encountered when preparing a bank reconciliation.
• Identify the characteristics of the different methods used to account for bad debts.

Chapter 6

• Describe the characteristics of the different inventory tracking systems.
• Note the advantages and disadvantages of the different inventory costing methods.
• Describe the calculation for the gross profit method.

Chapter 7

• Describe the proper accounting for an investment.

Chapter 8

• Recognize the costs to be capitalized for a fixed asset.
• Describe the derivation of a fixed asset’s useful life.
• Identify the nature of the mid-month convention.
• Note the calculation used to develop an accelerated depreciation method.
• Note the accounting for an idle fixed asset.

Chapter 9

• Describe the accounting for an asset retirement obligation.
• Define accretion expense.

Chapter 10

• Note the calculation method used to derive the interest rate inherent in an early payment discount.
• Describe the accounting for advance fees.
• Cite the different types of standard payment methods required of residents by continuing care retirement communities.

Chapter 11

• Describe the accounting for the extinguishment of debt.
• Describe the different types of bonds and the features that can be incorporated into the terms of a bond.
• Recognize the circumstances under which the tax-exempt status of a bond can be lost.

Chapter 12

• Recognize the circumstances under which the tax-exempt status of a bond can be lost.
• Note the factors involved in the determination of revenue.
• Identify the circumstances under which the expected value method can be used.
• Recognize the accounting for naming rights.

Chapter 13

• Recognize the calculation methods used to determine wages.
• Describe how unemployment tax rates are developed for a new employer, and thereafter.
• Describe the uses to which the Form W-4 can be put.
• Note how the wage bracket method is used to determine tax withholdings.
• Recognize the different methods that are available for setting payroll tax deposits.

Chapter 14

• Note the characteristics of a split-interest agreement.

Chapter 15

• Describe which features of a relationship between entities trigger a consolidation of their financial statements.

Chapter 16

• Understand the accounting for advertising expenditures.
• Note the proper accounting for a trust fund that is being used to settle malpractice claims.