There are three questions. Each are 150 words and references SPA at the end of each question. Due in 4 hours
Discuss three reasons why health care organizations need to generate and accumulate operating profits. Explain why profits might be preferred to other sources of resources (such as borrowing).
- 2. Why might a not-for-profit health care organization use fund accounting? Definition is – a fund is an accounting entity with its own separate set of financial records. A single health organization can have multiple different funds. An example is a separate fund which exists only to collect donor gifts, charities .
- 3. Accounting has frequently been referred to as the language of business and like other professions, it has its own language that describes the financial history and current financial status of the organization. Using your own professional experiences, or experiences with your own personal finances, briefly discuss an application of, or an experience with, some of the concepts or terminology found Chap. 4 of the assigned textbook. (Accounting Concepts – Chap. 4) Choose 3 from below
- Assets = Liabilities + Net Assets
- Going Concern
- Matching – basis for depreciation
- Full disclosure