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

The meaning of fund accounting 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. Fund accounting refers to the accounting system which is used mostly by government or not for profit organization. Under this accounting system, the organizations are required to keep a track of expenditure of the money in comparison to how it was earned. In other words, fund accounting is used by not for profit entities in order to track the usage of cash and the amount of cash allocated for different activities. The emphasis of fund accounting lies on accountability in comparison to profitability.

The meaning of fund accounting 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. Fund accounting refers to the accounting system which is used mostly by government or not for profit organization. Under this accounting system, the organizations are required to keep a track of expenditure of the money in comparison to how it was earned. In other words, fund accounting is used by not for profit entities in order to track the usage of cash and the amount of cash allocated for different activities. The emphasis of fund accounting lies on accountability in comparison to profitability.

Solution Summary: The author defines fund accounting as a process wherein financial transactions are recorded. It helps in summarizing the cash flows, financial position and operation of the company over an accounting period.

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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Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

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What is Fund Accounting?; Author: Aplos;https://www.youtube.com/watch?v=W5D5Dr0j9j4;License: Standard Youtube License