SOLUTION MANUAL – FINANCIAL MANAGEMENT
FOR PUBLIC HEALTH AND NOT-FOR-PROFIT
ORGANIZATIONS, 7TH EDITION BY FINKLER |
COMPLETE CHAPTERS 1– 15 LATEST EDITION 2026
, Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations1,
7TH EDITION
INTRODUCTION
Chapter 1 TO
FINANCIAL
QUESTIONS FOR DISCUSSION
1-1. Financial Management Is The Subset Of Management That Focuses On Generating Financial
Information That Can Improve Decisions. The Decisions Are Oriented Toward
Achieving The Various Goals Of The Organization While Maintaining A Satisfactory
Financial Situation. Financial Management Encompasses The Broad Areas Of Accounting And
Finance.
1-2. In Proprietary, Or For-Profit, Organizations, An Underlying Goal Is To Maximize
The Wealth Of The Owners Of The Organization.
1-3. In Public Service Organizations, Decisions Are Oriented Toward Achieving
The Various Goals Of The Organization While Maintaining A
Satisfactory Financial Situation.
1-4. Accounting Is A System For Keeping Track Of The Financial Status Of An Organization And
The Financial Results Of Its Activities. It Has Often Been Referred To As The
Language Of Business. The Vocabulary Used By Accounting Is The Language Of Nonbusiness
Organizations As Well.
1-5. Accounting Is Subdivided Into Two Major Areas: Managerial Accounting And Financial
Accounting. Managerial Accounting Relates To Generating Any Financial
Information That Managers Can Use To Improve The Future Results Of The
Organization. This Includes Techniques Designed To Generate Any Financial Data That
Might Help Managers Make More Effective Decisions. Major Aspects Of Managerial
Accounting Relate To Making Financial Plans For The Organization, Implementing Those
Plans, And Then Working To Ensure That The Plans Are Achieved. Some Examples Of
Managerial Accounting Include Preparing Annual Operating Budgets, Generating
Information For Use In Making Major Investment Decisions, And Providing The
Data Needed To Decide Whether To Buy Or Lease A Major Piece Of Equipment.
Financial Accounting Provides Retrospective Information. As Events That Have Financial
Implications Occur They Are Recorded By The Financial Accounting System. From Time To
Time (Usually Monthly, Quarterly, Or Annually), The Recorded Data Are
,Summarized And Reported To Interested Users. The Users Include Both Internal
Managers And People Outside The Organization. Those Outsiders Include Those
Who Have Lent Or Might Lend Money To The Organization (Creditors), Those Who Might
Sell Things To The Organization (Called Suppliers Or Vendors), And Other
Interested Parties. These Interested Parties May Include Those With A Particular Interest In
Public Service Organizations, Such As Regulators, Legislators, And Citizens. Financial
Reports Provide Information On The Financial Status Of The Organization At A Specific
Point In Time, As Well As Reporting The Past Results Of The Organization‘S Operations (I.E.,
How Well It Has Done From A Financial Viewpoint).
, Chapter 3: Additional Budgeting Concepts 3-2
1-6. Finance Focuses On The Alternative Sources And Uses Of The Organization‘S Financial
Resources. Obtaining Funds When Needed From Appropriate Sources And The Deployment Of
Resources Within The Organization Fall Under This Heading. In Addition, Finance
Involves The Financial Markets (Such As Stock And Bond Markets) That Provide A
Means To Generating Funds For Organizations.
1-7. Yes. Achieving The Goals Of The Organization Requires Financial Planning.
Financial Management Provides Information For Managers To Use In Making Their
Decisions. It Helps Managers By Providing Information On The Likely Financial Impact
Of Each Proposed Alternative. It Also Provides Information About Financial Stability,
Efficiency, And Effectiveness.
1-8. Clearly, We Might Expect Some Public Service Organizations That Are
Proprietary, Such As Some Hospitals, To Earn Profits. But What About Other Public
Service Organizations Such As Charities? They Should Make A Profit As Well. Profits
Provide A Safety Margin Against Unexpected Costs, Provide Resources To Replace
Buildings And Equipment, And To Expand And Improve Services.
1-9. Federal Government (See Text Figure 1-1)
Individual Income Taxes
Social Insurance Taxes
Corporate Income Tax
State And Local Government (See Text Figure 1-4)
Sales And Gross Receipts Tax
Federal Government
Property Taxes
Individual Income Taxes
Health Sector (See Text Figure 1-6)
Private Insurance
Medicare
Medicaid
Other Government Programs
Not-For-Profit Sector (See Text)
Private Payments For Goods And Services
Government Payments For Goods And Services
Donations
1-10. Federal Government Spending Exceeded $6 Trillion In 2020 And State And Local
FOR PUBLIC HEALTH AND NOT-FOR-PROFIT
ORGANIZATIONS, 7TH EDITION BY FINKLER |
COMPLETE CHAPTERS 1– 15 LATEST EDITION 2026
, Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations1,
7TH EDITION
INTRODUCTION
Chapter 1 TO
FINANCIAL
QUESTIONS FOR DISCUSSION
1-1. Financial Management Is The Subset Of Management That Focuses On Generating Financial
Information That Can Improve Decisions. The Decisions Are Oriented Toward
Achieving The Various Goals Of The Organization While Maintaining A Satisfactory
Financial Situation. Financial Management Encompasses The Broad Areas Of Accounting And
Finance.
1-2. In Proprietary, Or For-Profit, Organizations, An Underlying Goal Is To Maximize
The Wealth Of The Owners Of The Organization.
1-3. In Public Service Organizations, Decisions Are Oriented Toward Achieving
The Various Goals Of The Organization While Maintaining A
Satisfactory Financial Situation.
1-4. Accounting Is A System For Keeping Track Of The Financial Status Of An Organization And
The Financial Results Of Its Activities. It Has Often Been Referred To As The
Language Of Business. The Vocabulary Used By Accounting Is The Language Of Nonbusiness
Organizations As Well.
1-5. Accounting Is Subdivided Into Two Major Areas: Managerial Accounting And Financial
Accounting. Managerial Accounting Relates To Generating Any Financial
Information That Managers Can Use To Improve The Future Results Of The
Organization. This Includes Techniques Designed To Generate Any Financial Data That
Might Help Managers Make More Effective Decisions. Major Aspects Of Managerial
Accounting Relate To Making Financial Plans For The Organization, Implementing Those
Plans, And Then Working To Ensure That The Plans Are Achieved. Some Examples Of
Managerial Accounting Include Preparing Annual Operating Budgets, Generating
Information For Use In Making Major Investment Decisions, And Providing The
Data Needed To Decide Whether To Buy Or Lease A Major Piece Of Equipment.
Financial Accounting Provides Retrospective Information. As Events That Have Financial
Implications Occur They Are Recorded By The Financial Accounting System. From Time To
Time (Usually Monthly, Quarterly, Or Annually), The Recorded Data Are
,Summarized And Reported To Interested Users. The Users Include Both Internal
Managers And People Outside The Organization. Those Outsiders Include Those
Who Have Lent Or Might Lend Money To The Organization (Creditors), Those Who Might
Sell Things To The Organization (Called Suppliers Or Vendors), And Other
Interested Parties. These Interested Parties May Include Those With A Particular Interest In
Public Service Organizations, Such As Regulators, Legislators, And Citizens. Financial
Reports Provide Information On The Financial Status Of The Organization At A Specific
Point In Time, As Well As Reporting The Past Results Of The Organization‘S Operations (I.E.,
How Well It Has Done From A Financial Viewpoint).
, Chapter 3: Additional Budgeting Concepts 3-2
1-6. Finance Focuses On The Alternative Sources And Uses Of The Organization‘S Financial
Resources. Obtaining Funds When Needed From Appropriate Sources And The Deployment Of
Resources Within The Organization Fall Under This Heading. In Addition, Finance
Involves The Financial Markets (Such As Stock And Bond Markets) That Provide A
Means To Generating Funds For Organizations.
1-7. Yes. Achieving The Goals Of The Organization Requires Financial Planning.
Financial Management Provides Information For Managers To Use In Making Their
Decisions. It Helps Managers By Providing Information On The Likely Financial Impact
Of Each Proposed Alternative. It Also Provides Information About Financial Stability,
Efficiency, And Effectiveness.
1-8. Clearly, We Might Expect Some Public Service Organizations That Are
Proprietary, Such As Some Hospitals, To Earn Profits. But What About Other Public
Service Organizations Such As Charities? They Should Make A Profit As Well. Profits
Provide A Safety Margin Against Unexpected Costs, Provide Resources To Replace
Buildings And Equipment, And To Expand And Improve Services.
1-9. Federal Government (See Text Figure 1-1)
Individual Income Taxes
Social Insurance Taxes
Corporate Income Tax
State And Local Government (See Text Figure 1-4)
Sales And Gross Receipts Tax
Federal Government
Property Taxes
Individual Income Taxes
Health Sector (See Text Figure 1-6)
Private Insurance
Medicare
Medicaid
Other Government Programs
Not-For-Profit Sector (See Text)
Private Payments For Goods And Services
Government Payments For Goods And Services
Donations
1-10. Federal Government Spending Exceeded $6 Trillion In 2020 And State And Local
