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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

a To determine: The meaning of stakeholder. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. Stakeholder can be an organization, group or an individual that impacts a business or get impacted by the results of a project run by the business. Stakeholders can exist outside or within an organization and possess an interest in the success of the project. Stakeholder can influence an organization in a negative or positive manner. It can be concluded that stakeholder stands to be the party that possess financial interest in a business. The policies, objectives and action of the business affect its stakeholders. b To determine: The stakeholders for which the information about the financial condition of healthcare provider is essential. Introduction: Financial accounting can be defined as field associated with accounting wherein money is treated as a means for evaluating the performance of the economy and not as a factor of production. It comprises of a system of scrutinizing and management of money as it moves in and out of the business establishment in the form of expenses, revenue, liabilities and assets. The primary users of information from the financial accounting are government agencies, competitors, employees, customers, suppliers, management, investors and lenders. Here, Investor and managers make more use of financial accounting information. The investor uses this information to ensure that their investment is safe and they are most likely to earn substantial return over the same. Management uses this information to determine the expenses associated with health care are being set off against the revenue coming in from operations. The management also evaluates if the current strategy is good enough to carry out the operation or any new strategy needs to be devised to ensure that the operation remains intact. It can be concluded that the stakeholder interested in the information generated by financial accounting are investor and managers. c. To determine: The purpose of financial accounting. Introduction: Financial accounting can be defined as field associated with accounting wherein money is treated as a means for evaluating the performance of the economy and not as a factor of production. It comprises of a system of scrutinizing and management of money as it moves in and out of the business establishment in the form of expenses, revenue, liabilities and assets. The primary goal of financial accounting is to provide information to different stakeholders so as to enable them to have industry comparison and analyze the financial position of the company with the help of ratio and trend analysis. It provides useful insight about the future activities and current operation of the business to the management. It also serves the purpose of improving the investment interest by providing significant information to the loan creditors and shareholders. It can be concluded that the purpose of financial accounting is to ensure that the financial accounts or financial statement of an organization are prepared in an accurate manner for a specific period of time.

a To determine: The meaning of stakeholder. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. Stakeholder can be an organization, group or an individual that impacts a business or get impacted by the results of a project run by the business. Stakeholders can exist outside or within an organization and possess an interest in the success of the project. Stakeholder can influence an organization in a negative or positive manner. It can be concluded that stakeholder stands to be the party that possess financial interest in a business. The policies, objectives and action of the business affect its stakeholders. b To determine: The stakeholders for which the information about the financial condition of healthcare provider is essential. Introduction: Financial accounting can be defined as field associated with accounting wherein money is treated as a means for evaluating the performance of the economy and not as a factor of production. It comprises of a system of scrutinizing and management of money as it moves in and out of the business establishment in the form of expenses, revenue, liabilities and assets. The primary users of information from the financial accounting are government agencies, competitors, employees, customers, suppliers, management, investors and lenders. Here, Investor and managers make more use of financial accounting information. The investor uses this information to ensure that their investment is safe and they are most likely to earn substantial return over the same. Management uses this information to determine the expenses associated with health care are being set off against the revenue coming in from operations. The management also evaluates if the current strategy is good enough to carry out the operation or any new strategy needs to be devised to ensure that the operation remains intact. It can be concluded that the stakeholder interested in the information generated by financial accounting are investor and managers. c. To determine: The purpose of financial accounting. Introduction: Financial accounting can be defined as field associated with accounting wherein money is treated as a means for evaluating the performance of the economy and not as a factor of production. It comprises of a system of scrutinizing and management of money as it moves in and out of the business establishment in the form of expenses, revenue, liabilities and assets. The primary goal of financial accounting is to provide information to different stakeholders so as to enable them to have industry comparison and analyze the financial position of the company with the help of ratio and trend analysis. It provides useful insight about the future activities and current operation of the business to the management. It also serves the purpose of improving the investment interest by providing significant information to the loan creditors and shareholders. It can be concluded that the purpose of financial accounting is to ensure that the financial accounts or financial statement of an organization are prepared in an accurate manner for a specific period of time.

Solution Summary: The author defines financial accounting as a process wherein financial transactions are recorded and provides useful insight about these transactions to tax collection entities, regulators, and agencies.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 3, Problem 16.2STQ

Chapter 3, Problem 3.2Q

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Chapter 3 Solutions

Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 3 - Prob. 1.1STQ Ch. 3 - Prob. 1.2STQ Ch. 3 - Prob. 2.1STQ Ch. 3 - Prob. 2.2STQ Ch. 3 - Prob. 2.3STQ Ch. 3 - Prob. 3.1STQ Ch. 3 - Prob. 3.2STQ Ch. 3 - Prob. 3.3STQ Ch. 3 - Prob. 3.4STQ Ch. 3 - Prob. 3.5STQ

Ch. 3 - Prob. 4.1STQ Ch. 3 - Prob. 4.2STQ Ch. 3 - Prob. 4.3STQ Ch. 3 - Prob. 5.1STQ Ch. 3 - Prob. 5.2STQ Ch. 3 - Prob. 5.3STQ Ch. 3 - Prob. 6.1STQ Ch. 3 - Prob. 6.2STQ Ch. 3 - Prob. 7.1STQ Ch. 3 - Prob. 7.2STQ Ch. 3 - Prob. 7.3STQ Ch. 3 - Prob. 8.1STQ Ch. 3 - Prob. 8.2STQ Ch. 3 - Prob. 8.3STQ Ch. 3 - Prob. 8.4STQ Ch. 3 - Prob. 9.1STQ Ch. 3 - Prob. 9.2STQ Ch. 3 - Prob. 9.3STQ Ch. 3 - Prob. 10.1STQ Ch. 3 - Prob. 10.2STQ Ch. 3 - Prob. 11.1STQ Ch. 3 - Prob. 11.2STQ Ch. 3 - Prob. 12.1STQ Ch. 3 - Prob. 12.2STQ Ch. 3 - Prob. 12.3STQ Ch. 3 - Prob. 13.1STQ Ch. 3 - Prob. 13.2STQ Ch. 3 - Prob. 13.3STQ Ch. 3 - Prob. 13.4STQ Ch. 3 - Prob. 14.1STQ Ch. 3 - Prob. 14.2STQ Ch. 3 - Prob. 14.3STQ Ch. 3 - Prob. 15.1STQ Ch. 3 - Prob. 15.2STQ Ch. 3 - Prob. 16.1STQ Ch. 3 - Prob. 16.2STQ Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Prob. 3.8P Ch. 3 - Prob. 3.9P

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