Instructor’s w Manual w for w Financial w Management w for w Public, w Health, w and
w Not-for-Profit
SOLUTIONS MANUAL for Financial Management for
Public Health, and Not-for-Profit Organizations 7th
Edition by Steven Finkler, Thad Calabrese, (Complete 15
Chapters)
,Chapter w 3: w Additional 3-2
w Budgeting
INTRODUCTION
Chapter 1 w
TO
FINANCIAL
MANAGEMENT
Questions wfor wDiscussion
1-1. wFinancial wmanagement wis wthe wsubset wof wmanagement wthat wfocuses won wgenerating
wfinancial winformation wthat wcan wimprove wdecisions. wThe wdecisions ware woriented
wtoward wachieving wthe wvarious wgoals wof wthe worganization wwhile wmaintaining wa
wsatisfactory wfinancial wsituation. wFinancial wmanagement wencompassesthe wbroad w areas
w of waccounting w and w finance.
1-2. w In wproprietary, w or wfor-profit, w organizations, w an wunderlying w goal wis wto wmaximize
w the w wealth wof wthe w owners wof wthe w organization.
1-3. w In w public w service w organizations, w decisions w are w oriented w toward w achieving w the
w various w goals wof w the w organization wwhile w maintaining wa w satisfactory wfinancial
wsituation.
1-4. wAccounting wis wa wsystem wfor wkeeping wtrack wof wthe wfinancial wstatus wof wan
worganization wand wthe wfinancial w results w of w its w activities. w It w has w often w been
, Instructor’s w Manual w for w Financial w Management w for w Public, w Health, w and
w wreferred w to w as w the w language w of wbusiness. w
Not-for-Profit w The w w vocabulary w w used w
w by w w accounting w w is w w the w w language w w of w w nonbusiness
organizations w as w well.
, Chapter w 3: w Additional 3-4
w Budgeting
1-5. wAccounting wis wsubdivided winto wtwo wmajor wareas: wmanagerial waccounting wand
wfinancial waccounting. wManagerial waccounting wrelates wto wgenerating wany wfinancial
winformation wthat wmanagers wcan w use w to w improve w the w future w results wof wthe
w organization. w This w includes wtechniques wdesigned wto wgenerate wany wfinancial wdata
wthat wmight whelp wmanagers wmake wmore weffective wdecisions. wMajor waspects wof
wmanagerialaccounting wrelate wto wmaking wfinancial wplans wfor wthe worganization,
wimplementing wthose wplans, wand wthenworking wto wensure wthat wthe wplans w are
w achieved. w Some w examples w of w managerial w accounting w include w preparing w annual
woperating wbudgets, wgenerating winformation wfor wuse win wmaking wmajor winvestment
wdecisions, w and wproviding wthe wdata wneeded wto wdecide wwhether wto wbuy wor wlease wa
wmajor wpiece wof w equipment. wFinancial waccounting wprovides wretrospective
winformation. wAs wevents wthat whave wfinancial w implications woccur wthey ware wrecorded
w by wthe wfinancial waccounting wsystem. w From wtime wto wtime w(usually wmonthly,
wquarterly, wor wannually), wthe wrecorded wdata ware wsummarized w and wreported wto
winterested wusers. wThe wusers winclude wboth winternal wmanagers wand wpeople woutside
w the w organization. w Those w outsiders w include w those w who w have w lent w or w might
w lend wmoney wto wthe worganization w(creditors), wthose wwho wmight wsell wthings wto wthe
worganization w (called wsuppliers wor wvendors), wand wother winterested wparties. wThese
winterested wparties wmay winclude wthose wwith wa wparticular winterest win wpublic wservice
worganizations, wsuch wasregulators, wlegislators, w and w citizens. w Financial w reports
w provide w information w on w the w financial w status w of wthe worganization wat wa wspecific
wpoint win wtime, was wwell was wreporting wthe wpast wresults wof wthe
worganization‘soperations w (i.e., w how w well wit w has w done w from wa w financial
wviewpoint).
w Not-for-Profit
SOLUTIONS MANUAL for Financial Management for
Public Health, and Not-for-Profit Organizations 7th
Edition by Steven Finkler, Thad Calabrese, (Complete 15
Chapters)
,Chapter w 3: w Additional 3-2
w Budgeting
INTRODUCTION
Chapter 1 w
TO
FINANCIAL
MANAGEMENT
Questions wfor wDiscussion
1-1. wFinancial wmanagement wis wthe wsubset wof wmanagement wthat wfocuses won wgenerating
wfinancial winformation wthat wcan wimprove wdecisions. wThe wdecisions ware woriented
wtoward wachieving wthe wvarious wgoals wof wthe worganization wwhile wmaintaining wa
wsatisfactory wfinancial wsituation. wFinancial wmanagement wencompassesthe wbroad w areas
w of waccounting w and w finance.
1-2. w In wproprietary, w or wfor-profit, w organizations, w an wunderlying w goal wis wto wmaximize
w the w wealth wof wthe w owners wof wthe w organization.
1-3. w In w public w service w organizations, w decisions w are w oriented w toward w achieving w the
w various w goals wof w the w organization wwhile w maintaining wa w satisfactory wfinancial
wsituation.
1-4. wAccounting wis wa wsystem wfor wkeeping wtrack wof wthe wfinancial wstatus wof wan
worganization wand wthe wfinancial w results w of w its w activities. w It w has w often w been
, Instructor’s w Manual w for w Financial w Management w for w Public, w Health, w and
w wreferred w to w as w the w language w of wbusiness. w
Not-for-Profit w The w w vocabulary w w used w
w by w w accounting w w is w w the w w language w w of w w nonbusiness
organizations w as w well.
, Chapter w 3: w Additional 3-4
w Budgeting
1-5. wAccounting wis wsubdivided winto wtwo wmajor wareas: wmanagerial waccounting wand
wfinancial waccounting. wManagerial waccounting wrelates wto wgenerating wany wfinancial
winformation wthat wmanagers wcan w use w to w improve w the w future w results wof wthe
w organization. w This w includes wtechniques wdesigned wto wgenerate wany wfinancial wdata
wthat wmight whelp wmanagers wmake wmore weffective wdecisions. wMajor waspects wof
wmanagerialaccounting wrelate wto wmaking wfinancial wplans wfor wthe worganization,
wimplementing wthose wplans, wand wthenworking wto wensure wthat wthe wplans w are
w achieved. w Some w examples w of w managerial w accounting w include w preparing w annual
woperating wbudgets, wgenerating winformation wfor wuse win wmaking wmajor winvestment
wdecisions, w and wproviding wthe wdata wneeded wto wdecide wwhether wto wbuy wor wlease wa
wmajor wpiece wof w equipment. wFinancial waccounting wprovides wretrospective
winformation. wAs wevents wthat whave wfinancial w implications woccur wthey ware wrecorded
w by wthe wfinancial waccounting wsystem. w From wtime wto wtime w(usually wmonthly,
wquarterly, wor wannually), wthe wrecorded wdata ware wsummarized w and wreported wto
winterested wusers. wThe wusers winclude wboth winternal wmanagers wand wpeople woutside
w the w organization. w Those w outsiders w include w those w who w have w lent w or w might
w lend wmoney wto wthe worganization w(creditors), wthose wwho wmight wsell wthings wto wthe
worganization w (called wsuppliers wor wvendors), wand wother winterested wparties. wThese
winterested wparties wmay winclude wthose wwith wa wparticular winterest win wpublic wservice
worganizations, wsuch wasregulators, wlegislators, w and w citizens. w Financial w reports
w provide w information w on w the w financial w status w of wthe worganization wat wa wspecific
wpoint win wtime, was wwell was wreporting wthe wpast wresults wof wthe
worganization‘soperations w (i.e., w how w well wit w has w done w from wa w financial
wviewpoint).
