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Health, and Not-for-Profit Organizations 7th Edition by
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Steven Finkler, Thad Calabrese, (Complete 15 Chapters)
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1-1. Financial management is the subset of management that focuses on generating financial
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informationthat can improve decisions. The decisions are oriented toward achieving the various
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goals of the organization while maintaining a satisfactory financial situation. Financial management
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encompassesthe broad areas of accounting and finance.
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1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the
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owners ofthe organization.
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1-3. In public service organizations, decisions are oriented toward achieving the various goals of the
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organization while maintaining a satisfactory financial situation.
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1-4. Accounting is a system for keeping track of the financial status of an organization
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and the financial results of its activities. It has often been referred to as the language of business.
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1-5. Accounting is subdivided into two major areas: managerial accounting and financial accounting.
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Managerial accounting relates to generating any financial information that managers can use to
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improve the future results of the organization. This includes techniques designed to generate
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lease a major piece of equipment. Financial accounting provides retrospective information. As
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events that have financial implications occur theyare recorded bythe financialaccounting system.
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From time to time (usually monthly, quarterly, or annually), the recorded data are summarized and
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reporting the past results of the organization‘s operations (i.e., how well it has done froma
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financial viewpoint).
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1-6. Finance focuses on the alternative sources and uses of the organization‘s financial resources.
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Obtaining funds when needed from appropriate sources and the deployment of resources within
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theorganization fall under this heading. In addition, finance involves the financial markets (such as
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stock and bond markets) that provide a means to generating funds for organizations.
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1-7. Yes. Achieving the goals of the organization requires financial planning. Financial management
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information about financial stability, efficiency, and effectiveness.
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1-8. Clearly, we might expect some public service organizations that are proprietary, such as some
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hospitals, to earn profits. But what about other public service organizations such as charities?
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They should make a profit as well. Profits provide a safety margin against unexpected costs,
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provide resources to replace buildings and equipment, and to expand and improve services.
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1-9. Federalgovernment (see text Figure 1-1)
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spending was more than $3 trillion in 2018. In contrast, the GDP was $21 trillion in 2020. For more
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1-11. The reported surplus includes both on and off budget items. Social security taxes represent an
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Instructor’sManual for Financial Management for Public, Health, and Not-for-Profit
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Il`
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SOLUTIONS MANUAL for Financial Management for Il`.z Il`.z Il`.z Il`.z Il`.z
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Health, and Not-for-Profit Organizations 7th Edition by
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Steven Finkler, Thad Calabrese, (Complete 15 Chapters)
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Chapter 3: Il`.z Il` . Additional
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Chapter 1 Il`.z Il`
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FINANCIALM .z tv
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Questions for Discussion Il` .z Il`.z Il`
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goals of the organization while maintaining a satisfactory financial situation. Financial management
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1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the
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owners ofthe organization.
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organization while maintaining a satisfactory financial situation.
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and the financial results of its activities. It has often been referred to as the language of business.
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lease a major piece of equipment. Financial accounting provides retrospective information. As
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1-6. Finance focuses on the alternative sources and uses of the organization‘s financial resources.
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information about financial stability, efficiency, and effectiveness.
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They should make a profit as well. Profits provide a safety margin against unexpected costs,
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provide resources to replace buildings and equipment, and to expand and improve services.
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1-9. Federalgovernment (see text Figure 1-1)
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1-11. The reported surplus includes both on and off budget items. Social security taxes represent an
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