Homework Question on Health Care Organizations
- Please answer the following questions, you may copy and complete on a Word Document:
- Why is accounting important for health care organizations?
- Is it appropriate for health care organizations to make a profit?
- Is it reasonable to assume that the numbers reported on financial statements will be precisely accurate?
- Why is there a strong focus on liquid assets?
- What was the original purpose of fund accounting? Do you believe fund accounting is still a useful technique?
- What are the purposes of an independent audit?
- What is the difference between a “fair representation” and a “fair representation in accordance with GAAP”?
- What is the difference between an auditor’s management letter and the opinion letter?
- Why is it important to know where the organization’s cash comes from and where it goes?
- Do the four financial statements provide adequate information for managerial purposes? Explain
Homework Answer on Health Care Organizations
1.Importance of accounting in medical offices
Accounting department plays a major role within any medical office as it allows an organization to function in a cost effective way and at its fullest capability. Accounting helps to have perfect and well-timed financial statements.
2.Is it appropriate for health care organizations to make a profit?
No. it is not appropriate because this will have severe controlled access to medical care for the less advantaged and aged people as well as those with terrible health problems. In this case, profit making health care organizations only aggravates the increasing problem of medical care access.
3.Is it reasonable to assume that the numbers reported on financial statement will be precisely accurate?
Yes. It is logical because while providing financial statements information, the management depends on general function of financial statements. Such statements are intended to provide useful information at minimum cost.