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5 Written Questions

5 Matching Questions

  1. statement of retained earnings
  2. ratio analysis
  3. external benchmarking
  4. Current ratio
  5. Financial ratios for institutional pharmaciess
  1. a a method of using income statement and balance sheet daa t odetect trends and problems in the business, used to identify inventory and credit management probs, poor pricing, or declining sales/profitability
  2. b tells you how profits are being usedreports how business's retained earnings have changed over a period of time which include dividnet payments or net losses, which decrease retained earnings, net income and additional owner investment which increase retained earnings
  3. c used to assess the performance of the pharmacy department, purchases and payroll largest expenses in hospitals
  4. d current assets/current liablilities: it measures the ability to pay bankers/wholesalers back on time, ideal number between 2-4 and NCPA digest is 2.89, above 4 =too much invested in current assets, and lower than=pharmacy has probs paying current debts on time
  5. e ratios of other pharmacies of the same type and with similar financial resources, many professional organizations provide financial info and ratios through periodic surveys of their membership (but problems arise when pharmacies differ in Rx volume, location, and accounting)

5 Multiple Choice Questions

  1. debts that will come due after the current operating cycle of the business (5 year car loans)
  2. What's the biggest expense in a pharmacy?
  3. amounts owed for goods/services that have been used during the account period bur for which payment has not been made)
  4. debts that arise from purchase of goods or services on credit
  5. sales of merchandise normally sold by the business

5 True/False Questions

  1. personal expense per patient daytotal annual pharmacy payroll/annual patient days


  2. financial statementsprofit-loss statement which provides PAST performance of the business


  3. ROE (or return on investment/networth)Measures how effectively funds invested in teh firm by its owners/stockholders have been used, indicates rate of return they earn by investing in the business (NI/owners equity*100%)


  4. assetswhat a business owns, valuable resources that are owned or controlled by the business and were acquired at a measureable cost


  5. invested capitalprofits (or losses) that the business has made during its years of operation and that have been left in the business (profits increase this/losses decrease)


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