Business management
he budget is created using the basic financial information and accounting principles information that an organization reports in its monthly, quarterly, and annual financial reports. It is very important for a health care manager to understand the basic five areas of performance that set the financial plan for the organization. Define and provide an example of what the following mean: Short-term solvency Activity Financial leverage Profitability Value Define the following terms, and explain why they are important in a health care organization: Current ratio Total asset turnover Debt ratio Profit margin
