The Health Information Management Department is allocated $500,000 for its budget for the year. The Director expends...

The Health Information Management Department is allocated $500,000 for its budget for the year. The Director expends this allocation by authorizing expenditures throughout the year to pay employee salaries, buy supplies and pay for new equipment. The employees process the records of patients whose insurers pay the claims issued by the healthcare center. The employees use their paychecks to buy goods and services in the community. Some of the community members seek health care at the surgery center. Their insurances pay for the services. The monies from the insurers are allocated to the hospital departments for their daily operations.

The above scenario describes which one of the following concepts:

___a. The accounting cycle

___b. Post service float

___c. Cashflow continuum

Describe the characteristics of each of the above concepts.

Expert Solution

Answer :

Decription: Setting of Bdget for Exps

As the company fixed bdeget for Expense for years $ 500000/-

Expenses are devided in three part 1. Employees salary

2. Supplies Purchase

3. For puchase of New Equipment

Allocation of Revenue In Service Department of Hospital is described as post service float

summary : As budeget is fixed for whole years & Revenue are allocated on dalay basi based on daily operation which can be described as post service float

ekkarill92 answered 2 years ago

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