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

The organization that are making used of fund accounting Introduction: Fund accounting refers to the accounting system of recording data associated with financial statement which categorize accounts as unrestricted or restricted. It is significant for a provider of healthcare service so as to record the financial transaction of donation or grants received by individual and government agencies. It can be concluded the organization that is most likely to make use of the fund accounting is not for profit organization. Fund accounting is essential for not for profit organization because they make use of different funds wherein each fund has its own balance sheet and set of accounts so that it becomes easy to track the extent to which money has been utilized for the proposed purpose. For instance, a healthcare facility might have prepared separate fund for medical equipments, medical supplies, security and health awareness. Since, each fund has a separate budget, therefore fund accounting is undertaken by not for profit organization so as to keep a track on the expenditure against the funds available and for maintaining the level of expenditure so as to avoid any deficit.

The organization that are making used of fund accounting Introduction: Fund accounting refers to the accounting system of recording data associated with financial statement which categorize accounts as unrestricted or restricted. It is significant for a provider of healthcare service so as to record the financial transaction of donation or grants received by individual and government agencies. It can be concluded the organization that is most likely to make use of the fund accounting is not for profit organization. Fund accounting is essential for not for profit organization because they make use of different funds wherein each fund has its own balance sheet and set of accounts so that it becomes easy to track the extent to which money has been utilized for the proposed purpose. For instance, a healthcare facility might have prepared separate fund for medical equipments, medical supplies, security and health awareness. Since, each fund has a separate budget, therefore fund accounting is undertaken by not for profit organization so as to keep a track on the expenditure against the funds available and for maintaining the level of expenditure so as to avoid any deficit.

Solution Summary: The author explains that fund accounting is essential for not-for-profit organizations because each fund has its own balance sheet and set of accounts to track the extent to which money has been utilized for the proposed purpose.

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 4 Solutions

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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