Instructor’shManualhforhFinancialhManagementhforhPublic,hHealth,handhNot-for-Profit
SOLUTIONS MANUAL for Financial Management forPu
h h h h h h
blic Health, and Not-for-
h h h
Profit Organizations 7thEdition by Steven Finkler, Tha
h h h h h h h
d Calabrese, (Complete 15 Chapters)
h h h h
,Chapterh3:h AdditionalhBudgetinghConcepts 3-2
INTRODUCTION
Chapter 1 h T h
O FINANCIAL M
h h
ANAGEMENT
Questions for Discussion
h h
1-
1.hFinancialhmanagementhishthehsubsethofhmanagementhhthathhfocuseshhonhgenerati
nghfinancialhinformationhthathcanhimprovehdecisions.hThehdecisionsharehorientedhto
wardhachievinghthehvarioushgoalshofhthehorganizationhwhilehmaintaininghahsatisfact
oryhfinancialhsituation.hFinancialhmanagementhencompasseshthehbroadhareashofhac
countinghandhfinance.
1-2.hInhproprietary,horhfor-
profit,horganizations,hanhunderlyinghgoalhishtohmaximizehthehwealthhofhthehownersh
ofhthehorganization.
1-
3.hInhpublichservicehorganizations,hdecisionsharehorientedhtowardhachievinghthehvar
ioushgoalshofhthehorganizationhwhilehmaintaininghahsatisfactoryhfinancialhsituation.
1-
4.hAccountinghishahsystemhforhkeepinghtrackhofhthehfinancialhstatushofhanhorganizati
onhandhthehfinancialhresultshofhitshactivities.hIthhashhoftenhhbeenhreferredhtohashthehl
anguagehofhbusiness.hThehvocabularyhusedhbyhaccountinghishthehlanguagehofhnonbus
inesshorganizationshashwell.
1-
5.hAccountinghishsubdividedhintohtwohmajorhareas:hmanagerialhaccountinghandhfina
ncialhaccounting.hManagerialhaccountinghrelateshtohgeneratinghanyhfinancialhinfor
mationhthathmanagershcanhusehtohimprovehthehfuturehresultshofhthehorganization.hT
hishincludeshtechniqueshdesignedhtohgeneratehanyhfinancialhdatahthathmighthhelphm
anagershmakehmoreheffectivehdecisions.hMajorhaspectshofhmanagerialhaccountinghr
elatehtohmakinghfinancialhplanshforhthehorganization,himplementinghthosehplans,han
dhthenhworkinghtohensurehthaththehplansharehachieved.hSomehexampleshofhmanageri
alhaccountinghincludehpreparinghannualhoperatinghbudgets,hgeneratinghinformatio
nhforhusehinhmakinghmajorhinvestmenthdecisions,handhprovidinghthehdatahneededhtoh
decidehwhetherhtohbuyhorhleasehahmajorhpiecehofhequipment.hFinancialhaccountingh
provideshretrospectivehinformation.hAsheventshthathhavehfinancialhimplicationshocc
urhtheyharehrecordedhbyhthehfinancialhaccountinghsystem.hFromhtimehtohtimeh(usual
lyhmonthly,hquarterly,horhannually),hthehrecordedhdataharehsummarizedhandhreport
edhtohinterestedhusers.hThehusershincludehbothhinternalhmanagershandhpeoplehoutsi
dehthehorganization.hThosehoutsidershincludehthosehwhohhavehlenthorhmighthlendhm
oneyhtohthehorganizationh(creditors),hthosehwhohmighthsellhthingshtohthehorganizati
onh(calledhsuppliershorhvendors),handhotherhinterestedhparties.hThesehinterestedhp
artieshmayhincludehthosehwithhahparticularhinteresthinhpublichservicehorganizations,
, Instructor’shManualhforhFinancialhManagementhforhPublic,hHealth,handhNot-for-Profit
suchhashregulators,hlegislators,handhcitizens.hFinancialhreportshprovideh informatio
h
nh onh theh financialh statush ofh theh organizationh ath ah specific
, Chapterh3:h AdditionalhBudgetinghConcepts 3-4
pointh inh time,hash wellhashreportinghthehpasth resultsh ofhthehorganization‘shoperat
ionsh(i.e.,hhowhwellhithhashdonehfromhahfinancialhviewpoint).
SOLUTIONS MANUAL for Financial Management forPu
h h h h h h
blic Health, and Not-for-
h h h
Profit Organizations 7thEdition by Steven Finkler, Tha
h h h h h h h
d Calabrese, (Complete 15 Chapters)
h h h h
,Chapterh3:h AdditionalhBudgetinghConcepts 3-2
INTRODUCTION
Chapter 1 h T h
O FINANCIAL M
h h
ANAGEMENT
Questions for Discussion
h h
1-
1.hFinancialhmanagementhishthehsubsethofhmanagementhhthathhfocuseshhonhgenerati
nghfinancialhinformationhthathcanhimprovehdecisions.hThehdecisionsharehorientedhto
wardhachievinghthehvarioushgoalshofhthehorganizationhwhilehmaintaininghahsatisfact
oryhfinancialhsituation.hFinancialhmanagementhencompasseshthehbroadhareashofhac
countinghandhfinance.
1-2.hInhproprietary,horhfor-
profit,horganizations,hanhunderlyinghgoalhishtohmaximizehthehwealthhofhthehownersh
ofhthehorganization.
1-
3.hInhpublichservicehorganizations,hdecisionsharehorientedhtowardhachievinghthehvar
ioushgoalshofhthehorganizationhwhilehmaintaininghahsatisfactoryhfinancialhsituation.
1-
4.hAccountinghishahsystemhforhkeepinghtrackhofhthehfinancialhstatushofhanhorganizati
onhandhthehfinancialhresultshofhitshactivities.hIthhashhoftenhhbeenhreferredhtohashthehl
anguagehofhbusiness.hThehvocabularyhusedhbyhaccountinghishthehlanguagehofhnonbus
inesshorganizationshashwell.
1-
5.hAccountinghishsubdividedhintohtwohmajorhareas:hmanagerialhaccountinghandhfina
ncialhaccounting.hManagerialhaccountinghrelateshtohgeneratinghanyhfinancialhinfor
mationhthathmanagershcanhusehtohimprovehthehfuturehresultshofhthehorganization.hT
hishincludeshtechniqueshdesignedhtohgeneratehanyhfinancialhdatahthathmighthhelphm
anagershmakehmoreheffectivehdecisions.hMajorhaspectshofhmanagerialhaccountinghr
elatehtohmakinghfinancialhplanshforhthehorganization,himplementinghthosehplans,han
dhthenhworkinghtohensurehthaththehplansharehachieved.hSomehexampleshofhmanageri
alhaccountinghincludehpreparinghannualhoperatinghbudgets,hgeneratinghinformatio
nhforhusehinhmakinghmajorhinvestmenthdecisions,handhprovidinghthehdatahneededhtoh
decidehwhetherhtohbuyhorhleasehahmajorhpiecehofhequipment.hFinancialhaccountingh
provideshretrospectivehinformation.hAsheventshthathhavehfinancialhimplicationshocc
urhtheyharehrecordedhbyhthehfinancialhaccountinghsystem.hFromhtimehtohtimeh(usual
lyhmonthly,hquarterly,horhannually),hthehrecordedhdataharehsummarizedhandhreport
edhtohinterestedhusers.hThehusershincludehbothhinternalhmanagershandhpeoplehoutsi
dehthehorganization.hThosehoutsidershincludehthosehwhohhavehlenthorhmighthlendhm
oneyhtohthehorganizationh(creditors),hthosehwhohmighthsellhthingshtohthehorganizati
onh(calledhsuppliershorhvendors),handhotherhinterestedhparties.hThesehinterestedhp
artieshmayhincludehthosehwithhahparticularhinteresthinhpublichservicehorganizations,
, Instructor’shManualhforhFinancialhManagementhforhPublic,hHealth,handhNot-for-Profit
suchhashregulators,hlegislators,handhcitizens.hFinancialhreportshprovideh informatio
h
nh onh theh financialh statush ofh theh organizationh ath ah specific
, Chapterh3:h AdditionalhBudgetinghConcepts 3-4
pointh inh time,hash wellhashreportinghthehpasth resultsh ofhthehorganization‘shoperat
ionsh(i.e.,hhowhwellhithhashdonehfromhahfinancialhviewpoint).
