1. Discuss the role of the AICPA in establishing performance standardsin hospital accounting. Give specific examples of their efforts torevise and improve the quality of accounting practice in health care organizations.
2. Although Sarbanes-Oxley compliance is currently voluntary for non-profithospitals Bigalke and Roach (2005) suggest that all hospitals prepare an implementation planto ensure GAAP guided accounting practices and transparent financial reporting. Based on your course readings and investigation, provide a summary of animplementation plan that you would recommend to enhance accurate accounting practicein regards to improved internal controls, financial statements, policy making and fulldisclosure by corporate officers and board members.
3. Interim financial statements provide information about financial performance at the time the statements are prepared. Why is this important to internal decision makers, vendors and interested citizens? How does the posting of expense accruals improve the accuracy of interim statements?
4. What is the function of hospital accounting? How does it serve the needs of internal and external stakeholders of the hospital? Provide detailed examples to support your position.
5. Describe in detail how the accounting information processing steps from journalizing tothe preparation of financial statements with closing entries. Show at eachstep how the process maintains the integrity of the basic accounting equation :
Assets = Liabilities + Owner's Equity(Net Assets)
6. How do the accounting practices of tax exempt and non-tax exempt health care corporations differ in recording the distribution of operating profits to the "owners" of the corporation?