ACHE Week 3 and 4 Finance
1. What is Financial Accounting?
Financial accounting involves the identification, measurement, recording, and communication of an
organization’s economic events and financial status in monetary terms. ️
2. What is Managerial Accounting?
Managerial accoun...
Financial accounting involves the identification, measurement, recording, and communication of an
organization’s economic events and financial status in monetary terms. ✔️
2. What is Managerial Accounting?
Managerial accounting focuses on providing financial information internally to assist management in
decision-making, planning, and controlling operations.
3. What is the Difference Between Financial and Managerial Accounting?
Financial accounting is geared towards external reporting and compliance with regulations, while
managerial accounting is aimed at internal decision-making and often involves detailed analyses that are
not provided in financial accounting reports. ✔️
4. What is GAAP?
GAAP stands for Generally Accepted Accounting Principles, which are the authoritative standards for
financial reporting.
5. Types of Auditor's Opinions:
- Unqualified Opinion: Indicates that the financial statements present a true and fair view.
- Qualified Opinion: Points out any exceptions or issues found in the financial statements.
- Adverse Opinion: Indicates that the financial statements do not present a true and fair view. ✔️
6. Accounting Concepts:
Fundamental principles that guide the preparation of financial statements, ensuring consistency,
comparability, and reliability.
7. Accounting Methods:
- Cash Accounting: Records revenues and expenses when cash changes hands.
, - Accrual Accounting: Records revenues and expenses when they are earned or incurred, regardless of
the timing of cash flows. ✔️
8. Advantages of Cash Accounting:
- Simplicity in tracking cash flow.
- Provides a clear picture of available cash.
9. Advantages of Accrual Accounting:
- Offers a more accurate representation of financial performance.
- Matches income and expenses in the period they occur, ensuring better decision-making.
10. Four Financial Statements:
- Balance Sheet
- Income Statement (Statement of Operations)
- Statement of Cash Flows
- Statement of Changes in Equity ✔️
11. Statements of Operation (Income Statement):
This statement outlines the financial performance of an organization over a specific period, detailing
revenues and expenses.
12. What is the Purpose of the Statement of Operations?
To present the results of operating activities over a defined period, highlighting income and expenses.
✔️
13. Difference Between Gross and Net Patient Service Revenue:
Gross patient service revenue is the total charges for services before any deductions, while net patient
service revenue reflects the actual revenue received after accounting for discounts, charity care, and
bad debts. ✔️
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bestscores1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.53. You're not tied to anything after your purchase.
