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DICUSSION QUESTION 1

Why is it important that financial accounting systems report performance fairly and factually? What do you think might happen if they did not?

Financial accounting systems need to report performance fairly and factually for many different reasons. One of the biggest concerns would be getting anyone to invest in the company. If the financial listings are wrong then who is going to want to risk investing in the organization. There is also employees that can cause the same problems. If an employee starts thinking about buying stock and then discovers that the organization is reporting their financial health badly what makes the organization think that the employee will continue with buying stock.

There are a few things that come to mind when thinking about bad things that can happen when the financial accounting of any organization is reported inaccurately. The first that comes to mind is that the Securities and Exchanges commission can step in and then there is a possibility of people going to prison. There is also a big chance of the organization going out of business. You first have the investors not trusting the organization to make sure they get there money's worth. Then you also have the employees wondering about job security as well. Anytime someone invests in a company they are going to watch what the financials look like. I know that my husband and I own stock in the company he works for and we monitor what the stocks price is quite a bit. Not only to make sure that the company is not feeding the employees bad information but also to make sure that he is not in a company that is having issues or that something big might occur. A person has to always be careful especially in this day and age on who they put their trust in.

DISCUSSION QUESTION 2

Based on your experience or the week's readings, how do different departments in a hospital receive financial information?

In our facility financial information is received...