WK #2 HMGT 322 Discussion
*Review: http://www.a-systems.net/accounting.htm (This is a good introduction and review of accounting principles and statements if you are new to accounting or a bit rusty)*
• Specific Rules for Discussions
• Discussion response – your response to the discussion question should be between 150 – 300 words.
• Peer responses – Must be a minimum of 100 – 200 words and a maximum of 300 words for peer responses.
• Must provide a minimum of at least one (1) reference in your discussion and peer responses.
• There are two (2) required peer responses due per week.
• Week 2 Discussion
Discussion Topic
Choose ONE question below to discuss and then respond to TWO of your classmates answers
(Try not to repeat others answers). Clearly state which area you are responding to at the
beginning of your response.
1) Why would a healthcare provide use cash accounting? Discuss.
2) Why would a healthcare provider use accrual accounting? Discuss.
3) Identify one of the two key principals used in accrual accounting and state an advantage and disadvantage?
4) What is the difference between gross revenues and net revenues?
5) What is the difference between patient service revenue and other revenue?
6) What is a key difference between charity care and bad-debt? How is each handled on the income statement?
7) What is depreciation expense and what is its purpose?
8) What is the difference between net income and cash flow?
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