What are some difficulties related to measuring
productivity in the health services area?
(Excercise 2 page 373). Is the current focus on changing cost accounting
relevant to health care organizations?
Why or why not?
• Choose two health organizations as a Learning Team. One company may be Happy Hospital of Accounting Fundamentals. Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage of each of the two companies.
• Write a 1,050-word paper discussing how differences in the industries and different measurement conventions affect presentations. If one of the companies uses the cash basis of accounting, how would that differ from the accrual basis?
• Address the following in your paper:
o In what ways do the elements of the financial statements interact with one another?
o How might changing one of the financial statements affect the other financial statements?
o Why is it essential to understand the relationship between the financial statements?