As the Director of Accounting, you have been tasked with briefing during the new employee’s orientation on the principles of accounting and how these apply to your hospital. In addressing the principles of accounting, you are concerned with both sets of accounting information–financial and managerial. Managerial accounting has no formally adopted set of principles it relies strongly on financial accounting principles. Understanding the principles and basics of financial accounting is critical to understanding both financial and managerial accounting information.
- Address the regulations around safeguarding financial information to prevent fraudulent activity.
- Identify and explain the five (5) principles or processes of managerial accounting and how they apply to the financial statements specific to your healthcare institution.
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