Critical Thinking Questions Accounting and Finance Difference

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Accounting has a primary function to provide and develop data measuring the performance and disclosure of the company or organization to assist managers, investors, tax authorities and decision makers. The individual in the role of accounting is called an accountant and he or she has the responsibility to prepare financial statements such as balance sheets, income statements, and cash flows. The different categories for accounting are financial, cost, internal and external accounting. Finance has a function of decision making. The financial manager or consultant is an individual who performs the decision making process and uses the information provided from the accountant to an organization about possible losses and profits. Finance has…show more content…
Other nations, with universal care, spend 11 to 12% of their gross domestic product (GDP) on healthcare with Canada spending around 9%. US health costs have doubled in the past decade and 48 million Americans have no health insurance. Commonwealth Connector (2008) reported as of August 2008 there were 439,000 newly insured and 191,000 private coverage Massachusetts residents under the new Healthcare Reform. Residents that have enrolled in a private health insurance did with employer-subsidized plans and free care services were down 41% compared to the first quarter of the fiscal years of 2007 and 2008. When Healthcare Reform became law on April 12, 2006, there were 650,000 uninsured people in Massachusetts, and progress since then has been dramatic. Government, employers, healthcare providers and citizens have all had a role in achieving this success.
How Healthcare Organizations Are Paid
The healthcare market is increasing and relying more on clinical evidence for reimbursement even if problems with bad debt expenses are present. Medicare Physician Fee Schedule (MPFS) is an adjusted to reflect the variation in the cost in a practice from multiple geographical areas. Centers for Medicare Services (CMS) (2008) explains the geographic practice cost index (GPCI) is established for any Medicare payment for each of the three components of a procedure's relative value unit (RVU) this includes practice expense and
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