Get NURS 6211:Foundational Accounting Concepts and Financial Statements essay assignment help
NURS 6211 Week 3: Foundational Accounting Concepts and Financial Statements essay assignment
NURS 6211: Finance and Economics in Health Care Delivery | Week 3 essay assignment
It is a typical day at Greenwood Hospital in upstate New York. A nurse enters the supply closet and takes out some bandages to replace old ones on a patient who was admitted from the surgical ward several hours ago. This is a simple event that happens thousands of times a day in thousands of hospitals, but have you ever stopped to consider how that task is reflected in the accounting records of the organization? How is money allocated to restock the supplies? How is the organization reimbursed for the cost of those bandages?
NURS 6211:Foundational Accounting Concepts and Financial Statements essay assignment
This week, you are introduced to basic accounting concepts that impact daily operations within health care organizations.
Learning Objectives
Students will:
- Distinguish between accrual accounting and cash accounting
- Analyze the role of cash in organizations
- Apply basic financial calculations using information found on an income sheet and balance statement
Discussion: Foundational Accounting Concepts essay assignment
Although it is important to be familiar with foundational accounting concepts and to understand how they are calculated, it is equally important to recognize how the information from these calculations fits into the larger picture of daily actions in hospitals. Consider the simple task of taking patients their dinner trays. Think of all of the different costs that are involved. The dietitian must be paid, as well as the food handlers. The food has to be purchased as well as the trays and utensils. Trays must be delivered, picked up, and cleaned. A cost is incurred at each stage.
In this Discussion, you consider how the costs of the daily tasks performed by nurses are accounted for and impact cash flow.
To prepare:
- Review this week’s Learning Resources focusing on the difference between accrual accounting and cash accounting. Conduct additional research as needed until you are confident that you grasp the distinction between the two approaches.
- Consider why you would select one approach over the other and the effect it would have on financial decision making. Determine how you could explain these concepts to someone not familiar with accounting.
- Select a task you might perform daily, or an item that you might use daily in the workplace, and determine where the cost should appear on a balance sheet.
- Reflect on the role of cash in the financial operations of an organization. How could cash flow issues impact your own organization (or one with which you are familiar)?
NURS 6211:Foundational Accounting Concepts and Financial Statements
By Day 3
Post an explanation of the difference between accrual accounting and cash accounting, and when each might be used. Then, describe a task you might perform or an item you might use daily, and explain where the cost should appear on a balance sheet, and why. Finally, assess how cash flow issues could impact your own organization (or one with which you are familiar).
Read a selection of your colleagues’ responses.
By Day 6
Respond to at least two of your colleagues on two different days using one or more of the following approaches:
- Ask a probing question, substantiated with additional background information, evidence or research.
- Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
- Validate an idea with your own experience and additional research.
- Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.
Assignment: Application: Basic Financial Calculations essay assignment
Before you learned algebra, you first had to learn basic addition, subtraction, multiplication, and division. Similarly, before you can fully understand the finances of a health care organization, you first need to be able to apply basic financial calculations used in almost all domains of accounting. A firm grasp of these accounting concepts will better enable you to confidently make budgetary and resource decisions. In this Assignment, you complete calculations that will familiarize you with some of the necessary basic accounting concepts.
Based on the information and financial statements below, calculate the following financial ratios in an Excel Spreadsheet:
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- Current Ratio
= Total Current Assets / Total Current Liabilities
-
- Days of Cash on Hand
= Cash / (Total Operating Expense / 365 days)
-
- Age of Accounts Receivable
= Accounts Receivable / (Net Patient Service Revenue / 365)
-
- Age of Physical Plant
= Accumulated Depreciation / Depreciation Expense
-
- Debt to Equity Ratio
= [Long Term] Debt / Net Assets
-
- Debt to Assets Ratio
= [Long Term] Debt / Total Assets
-
- Collection Rate
= Net Patient Service Revenue / Gross Patient Service Revenue
-
- Operating Margin Ratio
= Gain or (Loss) from Operations / Net Patient Service Revenue
Note: For those Assignments in this course that require you to perform calculations you must:
- Use the ‘Week 3 Application Assignment Template’ from your Learning Resources
- Show all your calculations and formulas in the spreadsheet