Financial Management Essay Example | Topics and Well Written Essays - 1500 words - 2

Financial Management - Essay Example (Kieso, 2009) Recording includes journalizing the transactions by recording them into a daily book known as General Journal; these transactions are then posted in the ledger to separate the transaction with respect to their nature. Moreover, these are subsequently used to make financial statements at the end of the accounting cycle to gauge the performance of the firm. (Kieso, 2009) However, this all process is governed under some accounting principles that are taken into account when the transaction are recorded, posted or reused in the making of the financial statements which include balance sheet, statement of income and expenditure, statement of cash flows and statement of changes in equity. (Kieso, 2009) ACCOUNTING CONCEPTS The accounting concepts include the assumptions on which the accounting systems are based. They provide the key steps and guides towards the preparation of financial statements. ... Below, we will discuss in detail about the concepts mentioned above. Business Entity: A concept that treats business as a separate entity from that of its owners. Thus if the owner of the firm purchases a car for his personal use then that transaction would not be treated as a part of the business; however if the car would have been purchased for the business usage, then the transaction would have been recorded under the account of the business. (Kieso, 2009) Money Measurement: Accounting allows one to record only those transactions which are monetary in nature. (Kieso, 2009) For example, Apple by virtue of accounting laws can never bring the worth of Steve Jobs on the financial statements, nor it was able to reflect the expected loss in Apple’s worth after Mr. Jobs died, thus a company cannot bring the death of an employee on the financial statements since the event cannot be classified in terms of money. However, if a transaction is monetary in nature then only it can be rec orded; for instance, ABC Company purchased office equipment worth $1 million, now, since the transaction is monetary in nature, the transaction can be recorded in the books of the accounts. Cost Concept: This concept requires one to record an asset at a cost at which it is acquired. For instance, if Wal-Mart was able to acquire a new land at $1 million whose market price was $2 million, then the transaction will record land at $1 million, even though the market price of land is $2 million. There are two advantages of this assumption; first being the fact that it ensures filtering of more than one possible market price, and second, being the fact that the cost can be documented and thus can be used

Case study on Western States University Hospital Essay

Case study on Western States University Hospital - Essay Example In the present case, the lack of nursing leadership is the main reason that information system is not being used to its full potential. The importance of IT/IS system needs to disseminated amongst the employees so that they are able to understand the vast potential of computer and how it would improve and improvise their performance outcome. The success of system could only realized when the people who are directly involved with the various aspects of the information, ensure that small effort from them would significantly impact the outcome of the necessary outcome. ABC system is fully capable of coordinating activities and ensuring smooth operation of the hospital when details of patients are entered timely. While admitting clerks need to fill in the initial details of the patients, the discharge and transfer of patients need to be timely entered within the database by the nursing staff to produce updated reports of the patients. There is definitely huge room for improvement. The basic purpose of all business is to strive for improved performance. The hospital management must also ensure performance improvement through leadership initiatives that promote team building, shared goals and collective decision making. Indeed, performance measurement and improvement have increasingly become key issues in healthcare delivery. Meeting the needs and requirements of patients are the major objectives of effective healthcare delivery system.... Hence, in the present case, development of core performance improvement team would help to motivate, inform and train the employees, especially nursing staff, in improving their individual and collective performance for improved results. The most appropriate type of PI team would be the one that understands that knowledge leads to empowerment so that people can make decisions based on informed choices. Hence, team members must comprise of persons who have strong cross cultural understanding and understand the implicit and explicit importance of technology. The main goal of the team would be to identify the areas where the creative inputs of the staff would impact on the performance. The necessary linkages like training of staff on new skills would also be part of PI team so that staff can keep up with the on-going changes within and outside the organizations and ensure continuous improvement in their performance. Answer 3 Organizational structure of hospital is complex in its deliver y of goals. Smooth operations within its various departments become critical part of its success. The PI team of the hospitals should therefore, comprise of managers and leaders from different department. Nurses, physicians, administrators, clinicians, dieticians and pharmacists should be included. They should understand the need for continuous improvement of performance and have clearly defined goals for their team and provided with requisite knowledge skills to achieve their target. The team members must be educated on the need for coordinated efforts to achieve the wider goals and objectives of the hospitals. Nurses and physicians are intrinsic part of healthcare industry that is directly