Colorado Technical University Role of Financial Statements Paper

Discussion Board

Unit: The Role of Financial Statements

Primary Task Response:Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Understanding basic accounting principles is imperative to the health care manager role. Reading a balance sheet and recognizing the importance of cash flow are skills that are compulsory to this function. With this in mind, discuss the following:

  • Discuss the most important headings in a balance sheet and what the summary numbers mean.
  • Explain 4-5 reasons why cash flow is important to a health care organization.
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