The importance of the above two statements

AN INCOME STATEMENT

A BALANCE SHEET

THE BASIS FOR THE ACCOUNTING PROCESS

The basis for the accounting process is the accounting equation. It shows the relationship among the firm’s assets, liabil­ities, and owner’s equity.

Assets are the items of value that a firm owns — cash, inven­tories, land, equipment, buildings, patents, and the like.

Liabilities are the firm’s debts and obligations — what it owes to others.

Owner’s equity is the difference between a firm’s assets and its liabilities — what would be left over for the firm’s owners if its assets were used to pay off its liabilities.

The relationship among these three terms is the following:

Owners’ equity = assets – liabilities (the owners’ equity is equal to the assets minusthe liabilities).

For a sole proprietorship or partnership, the owners’ equity is shown as the difference between assets and liabilities. In a part­nership, each partner’s share of the ownership is reported sepa­rately by each owner’s name. For a corporation, the owners’ eq­uity is usually referred to as stockholders’ equity or sharehold­ers ‘equity. It is shown as the total value of its stock, plus retained earnings that have accumulated to date.

By moving the above three terms algebraically, we obtain the standard form of the accounting equation:

Assets = liabilities + owners’ equity (the assets are equal to the liabilities plusthe owners’ equity)

A balance sheet (or statement of financial position), is a summary of a firm’s assets, liabilities, and owners’ equity ac­counts at a particular time, showing the various money amounts that enter into the accounting equation. The balance sheet must demonstrate that the accounting equation does indeed balance. That is, it must show that the firm’s assets are equal to its liabilities plus its owners’ equity. The balance sheet is prepared at least once a year. Most firms also have balance sheets prepared semiannually, quarterly, or monthly.

An income statement is a summary of a firm’s revenues and expenses during a specified accounting period. The in­come statement is sometimes called the statement of income and expenses. It may be prepared monthly, quarterly, semiannually, or annually. An income statement covering the previous year must be included in a corporation’s annual report to its stockholders.

The information contained in these two financial statements becomes more important when it is compared with corresponding information for previous years, for competitors, and for the indus­try in which the firm operates. A number of financial ratios can also be computed from this information. These ratios provide a picture of the firm’s profitability, its short-term financial position, its activity in the area of accounts receivables and inventory, and its long-term debt financing. Like the information on the firm’s fi­nancial statements, the ratios can and should be compared with those of past accounting periods, those of competitors, and those representing the average of the industry as a whole (4200).

Вариант индивидуального чтения №2*.

Переведите толковый словарь. Пополните словарь по специальности «Менеджмент в сфере здравоохранения», данный в приложении.

Glossary (толковый словарь).

Authority: The power derived from a person’s position in an organization, the power to influence thought, opinion, or behavior. A manager’s authority should be matched with his or her level of responsibility. (See responsibility)

Change dynamics: The driving and resisting forces and their interplay in a changing environment.

Change management: The art and science of managing the dynamics of change.

Change agent: A person who advocates and facilitates change.

Communication: The process of exchanging or transmitting information or knowledge. Effective communication requires a motivated sender, a clear message, and an actively involved receiver.

Continuous quality improvement (CQI): A management concept that engages the entire organization in the systematic examination of the quality of its inputs, processes, and outcomes and the introduction of appropriate changes.

Control: (v) To monitor or verify performance, to introduce corrective action.

(n) A process of monitoring and evaluating progress and providing feedback.

Customer: In a market-oriented system, the recipient or purchaser of a service or product.

In health care, patients are often referred to as customers, but the term can also be applied to the community served, doctors who admit patients for service, businesses or insurance carriers that pay for health services, and other individuals, agencies and organizations that receive or pay for health services for themselves or on behalf of others.

Decision making: The process of selecting one alternative from among many, using a logical step-by-step process and using both objective and subjective information.

Epidemiologic rate measures provide descriptive information relative to the impact of disease on a given population. In general, an epidemiological rate is the number of cases in an at-risk population. Some standard indicators are:

Incidence: The number of new cases of disease per thousand of population occurring in a specified period of time relative to the population at risk.

Prevalence: the total number of new cases in the population at a specified time relative to the total number of persons in the population at the same time.

Morbidity: The number of ill persons divided by the number of persons at risk.

Mortality: The number of deaths relative to the number of persons at risk.

Feedback: Information gathered from monitoring a system’s inputs, processes, and results that is used to improve the system’s future performance.

Force field analysis: A method, developed by Kurt Lewin, for analyzing the driving and resisting forces that upset an organization’s equilibrium as it moves through the process of change.

Goals: Statements that describe what an organization hopes to achieve in the future. Goals provide direction and focus and denote end results rather than actions. Goals are usually for an extended time frame. (See objectives.)

Indicators: Indirect measures of process or performance that help direct management toward the most fruitful interventions.

Inputs: The people, finances, materials, and other resources introduced into a system.

Key indicators: Selected indicators that have the greatest potential of measuring, or most directly measuring, a specified process or performance.

Leadership: A manager’s ability to create a working environment, and set a future direction, that encourages members of an organization to contribute their best efforts toward common goals.

Management: The process of getting work done through others—done properly, on time, and within budget. (D. Gustafson)

Management functions: Major activities performed by managers to accomplish the objectives of their organizations and classified into five broad categories: planning, organizing, staffing, directing, and controlling.

Management skills are classified into broad categories: interpersonal, informational, decisional, technical, human, and conceptual skills that contribute to managerial success.

Managerial Epidemiology: A concept that integrates the theories of management and epidemiology to more effectively identify health needs that need to be addressed in the planning and management of health services organizations.

Objectives: Specific statements of achievable results. Objectives are quantifiable, have a defined time frame, and can be used to measure progress toward a long-term goal. (See goals.)

Organizational culture: The basic assumptions and beliefs that are shared by members of an organization. (Edgar Schein)

Outputs: The product or service resulting from the system’s process.

Primary Prevention: Identification of mitigating circumstances that lead to the development of disease before the disease or injury occurs. Primary prevention occurs before the onset of pathological changes. Example: family planning, immunizations

Process: A method or technique of converting, enhancing, or modifying inputs to produce desired results.

Quantitative tools: Methods and techniques for analyzing objective data and providing a statistical basis for decision making.

Qualitative tools: Methods such as observation and focus groups, used to gather subjective data for decision making.

Resistance: Reluctance or opposition to change resulting from disagreement on philosophy, objectives, or approach; misunderstanding; threat or insecurity; and/or personal readiness. Resistance can also emerge from lack of time, limited resources, or the demands of competing priorities.

Responsibility: The obligation to perform a specified activity or function or to achieve a specified objective. A manager should be given authority that is consistent with his or her responsibilities in order to be fully accountable for performance. (See authority.)

Secondary Prevention: The early detection of disease coupled with timely, efficient, and effective care to prevent further deterioration along the disease process and improve outcomes. Example: Prenatal care, screening for elevated cholesterol/triglyceride levels with subsequent education for reduction.

Social Marketing: 1) The adaptation of commercial marketing technologies to programs designed to influence the voluntary behavior of target audiences to improve their personal welfare and that of the society of which they are a part.

2) Advertising or mass media campaigns seeking to shape attitudes, increase awareness, and encourage either the use of certain services or changes in personal or collective behavior.

Stakeholders: Those who have a financial, personal, or emotional investment in, or who are otherwise affected by, an organization’s behavior or performance.

System: An organization of inputs, processed in a certain way, to produce a desired result or output

Systems thinking: A way of seeing the whole in what appears to be unrelated parts.

A framework for seeing interrelationships rather than independent things,

for seeing patterns of change rather than static “snapshots.” (Peter Senge)

Tertiary Prevention targets reduction in recidivism and repeat incidence of disease indigents. Example: Cardiac rehabilitation following a myocardial infarction

Vision: A motivational image of a desired future created or articulated by management as a means of focusing the efforts of an organization’s members on a common goal.

Whole systems change: An approach to change management that involves large numbers of employees—and sometimes customers, suppliers, and other stakeholders—in a series of exercises, meetings, and other activities intended to break down cross functional barriers, encourage collaborative decision making, and draw on the experience of those closest to the work being performed (6500).

Дата добавления: 2015-01-03