Discussion Foundational Accounting ConceptsAlthough it is i

Discussion: Foundational Accounting ConceptsAlthough it is important to befamiliar with foundational accounting concepts and to understand how they arecalculated, it is equally important to recognize how the information from thesecalculations fits into the larger picture of daily actions in hospitals.Consider the simple task of taking patients their dinner trays. Think of all ofthe different costs that are involved. The dietitian must be paid, as well asthe food handlers. The food has to be purchased as well as the trays andutensils. Trays must be delivered, picked up, and cleaned. A cost is incurredat each stage.In this Discussion, you consider howthe costs of the daily tasks performed by nurses are accounted for and impactcash flow.To prepare:Review this week’s Learning Resources focusing on thedifference between accrual accounting and cash accounting. Conductadditional research as needed until you are confident that you grasp thedistinction between the two approaches.Consider why you would select one approach over theother and the effect it would have on financial decision making. Determinehow you could explain these concepts to someone not familiar withaccounting.Select a task you might perform daily, or an item thatyou might use daily in the workplace, and determine where the cost shouldappear on a balance sheet.Reflect on the role of cash in the financial operationsof an organization. How could cash flow issues impact your ownorganization (or one with which you are familiar)?ByDay 3Post an explanation of the difference between accrual accountingand cash accounting, and when each might be used. Then, describe a task youmight perform or an item you might use daily, and explain where the cost shouldappear on a balance sheet, and why. Finally, assess how cash flow issues couldimpact your own organization (or one with which you are familiar).