Solutions Manual For Financial Management for Public
Health, and Not-for- Profit Organizations 7th Edition by
Studocu is not sponsored or endorsed by any college or university
Downloaded by Paul Wilson ()
, SOLUTIONS MANUAL
Financial Management for Public Health, and Not-for-
Profit Organizations 7th Edition by Finkler, Calabrese,
All 1 to 15 Chapters
Downloaded by Paul Wilson ()
, Chapter 3: Additional Budgeting Concepts 3-2
INTRODUCTION
Chapter 1 TO
FINANCIAL
MANAGEMENT
Questions for Discussion
1-1. Financial management is the subset of management that focuses on generating financial information
that can improve decisions. The decisions are oriented toward achieving the various goals of the
organization while maintaining a satisfactory financial situation. Financial management encompasses
the broad areas of accounting and finance.
1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the
owners of the organization.
1-3. In public service organizations, decisions are oriented toward achieving the various goals of the
organization while maintaining a satisfactory financial situation.
1-4. Accounting is a system for keeping track of the financial status of an organization and the financial
results of its activities. It has often been referred to as the language of business. The vocabulary
used by accounting is the language of nonbusiness organizations as well.
1-5. Accounting is subdivided into two major areas: managerial accounting and financial accounting.
Managerial accounting relates to generating any financial information that managers can use to
improve the future results of the organization. This includes techniques designed to generate any
financial data that might help managers make more effective decisions. Major aspects of
managerial accounting relate to making financial plans for the organization, implementing those
plans, and then working to ensure that the plans are achieved. Some examples of managerial
accounting include preparing annual operating budgets, generating information for use in making
major investment decisions, and providing the data needed to decide whether to buy or lease a
major piece of equipment. Financial accounting provides retrospective information. As events that
have financial implications occur they are recorded by the financial accounting system. From time to
time (usually monthly, quarterly, or annually), the recorded data are summarized and reported to
interested users. The users include both internal managers and people outside the organization.
Those outsiders include those who have lent or might lend money to the organization (creditors),
those who might sell things to the organization (called suppliers or vendors), and other interested
parties. These interested parties may include those with a particular interest in public service
organizations, such as regulators, legislators, and citizens. Financial reports provide information on
the financial status of the organization at a specific point in time, as well as reporting the past
results of the organization‘soperations (i.e., how well it has done from a financial viewpoint).
Downloaded by Paul Wilson ()
Health, and Not-for- Profit Organizations 7th Edition by
Studocu is not sponsored or endorsed by any college or university
Downloaded by Paul Wilson ()
, SOLUTIONS MANUAL
Financial Management for Public Health, and Not-for-
Profit Organizations 7th Edition by Finkler, Calabrese,
All 1 to 15 Chapters
Downloaded by Paul Wilson ()
, Chapter 3: Additional Budgeting Concepts 3-2
INTRODUCTION
Chapter 1 TO
FINANCIAL
MANAGEMENT
Questions for Discussion
1-1. Financial management is the subset of management that focuses on generating financial information
that can improve decisions. The decisions are oriented toward achieving the various goals of the
organization while maintaining a satisfactory financial situation. Financial management encompasses
the broad areas of accounting and finance.
1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the
owners of the organization.
1-3. In public service organizations, decisions are oriented toward achieving the various goals of the
organization while maintaining a satisfactory financial situation.
1-4. Accounting is a system for keeping track of the financial status of an organization and the financial
results of its activities. It has often been referred to as the language of business. The vocabulary
used by accounting is the language of nonbusiness organizations as well.
1-5. Accounting is subdivided into two major areas: managerial accounting and financial accounting.
Managerial accounting relates to generating any financial information that managers can use to
improve the future results of the organization. This includes techniques designed to generate any
financial data that might help managers make more effective decisions. Major aspects of
managerial accounting relate to making financial plans for the organization, implementing those
plans, and then working to ensure that the plans are achieved. Some examples of managerial
accounting include preparing annual operating budgets, generating information for use in making
major investment decisions, and providing the data needed to decide whether to buy or lease a
major piece of equipment. Financial accounting provides retrospective information. As events that
have financial implications occur they are recorded by the financial accounting system. From time to
time (usually monthly, quarterly, or annually), the recorded data are summarized and reported to
interested users. The users include both internal managers and people outside the organization.
Those outsiders include those who have lent or might lend money to the organization (creditors),
those who might sell things to the organization (called suppliers or vendors), and other interested
parties. These interested parties may include those with a particular interest in public service
organizations, such as regulators, legislators, and citizens. Financial reports provide information on
the financial status of the organization at a specific point in time, as well as reporting the past
results of the organization‘soperations (i.e., how well it has done from a financial viewpoint).
Downloaded by Paul Wilson ()
