Ø Each question needs be answered in 1.5 pages typewritten, double spaced 10 pt. type.
Ø Please complete 4 out of 6 questions. All responses must be in essay form. In your response please address all facets of the question being posed. While your notes should provide ample information to thoroughly answer each question, feel free to use other reference sources.
1. Discuss the role of the AICPA in establishing performance standards in hospital accounting. Give specific examples of their efforts to revise and improve the quality of accounting practice in health care organizations.
2. Although Sarbanes-Oxley compliance is currently voluntary for non-profit hospitals Bigalke and Roach (2005) suggest that all hospitals prepare an implementation plan to ensure GAAP guided accounting practices and transparent financial reporting. Based on your course readings and investigation, provide a summary of an implementation plan that you would recommend to enhance accurate accounting practice in regards to improved internal controls, financial statements, policy making and full disclosure 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 to the preparation of financial statements with closing entries. Show at each step how the process maintains the integrity of the basic accounting equation :
Assets = Liabilities + Owners 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?