HCA 240 Week 3 Assignment, Determining Financial Viability

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Accounting and finance are fundamental in regard to money in any type of business. These terms can be confusing at times but cannot be used interchangeably even though they havesimilar meanings, each ... has its own significant role. Accounting involves recording,storing, sorting, retrieving, and summarizing financial reports. As well as analyzing and gathering all information to be presented to other employees in different departments. Once reports are finalized,accounting in a healthcare setting is beneficial in making informed business decisions. Finance is a broader term than accounting because it has two movements, the examination of how money is managedand the real procedure of procuring required assets. The management department deals with finances in which it manages the cash flow. Financing is the demonstration of giving assets to business exercises, making purchases or contributing. Finance in a healthcare setting is managing investment accounts in which one can raise capital. The purpose of this assignment is to define finance and accounting, explain its roles and the relationship between them, and determine the viability of a healthcare organization.AccountingAccounting as defined in the book is “the process and principles for preparing and disseminating financial information. The third phase of the management control process” (Cleverley, Song, & Cleverley, 2011). Accounting evaluates past expenses and the productivity of the company. Like mentioned before, accounting involves recording, storing, sorting, retrieving, summarizing, and analyzing financial reports. Accounting involves giving an organization's administration the data it needs to keep the business fiscally solid. Accounting can [Show More]

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