Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications, 3rd Edition

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PRINCIPLES AND PRACTICES OF HEALTH CARE ACCOUNTING

LEARNING OBJECTIVES

• Record financial transactions

• Understand the basics of accrual accounting

• Summarize transactions into financial statements

The financial viability of a health care organization results from numerous decisions made by various people, including care givers, administrators, boards, lenders, community members, and politicians. These decisions eventually result in an organization’s acquiring and using resources to provide services, to incur obligations, and to generate revenues. One of the major roles of accounting is to record these transactions and report the results in a standardized format to interested parties. This chapter shows how a series of typical transactions ...