Critical Thinking Questions Accounting and Finance Difference

1198 Words Jun 2nd, 2011 5 Pages
Accounting has a primary function to provide and develop data measuring the performance and disclosure of the company or organization to assist managers, investors, tax authorities and decision makers. The individual in the role of accounting is called an accountant and he or she has the responsibility to prepare financial statements such as balance sheets, income statements, and cash flows. The different categories for accounting are financial, cost, internal and external accounting. Finance has a function of decision making. The financial manager or consultant is an individual who performs the decision making process and uses the information provided from the accountant to an organization about possible losses and profits. Finance has …show more content…
Financial Risk and Return Relationship
The relationship of rate and risk of can be directly connected. As the risk level of an investment increases, the return can potentially increases as well. Investment risk and return are associated with various types of investment options. Individuals have two types of expectations about the future they are certainty and uncertainty. The actual return and investment will not be the same as the expected return for either will be higher or lower. An investor too will want to avoid risk, and will hope the returns from the investment are the same or expected to be more. The risk of a security and the portfolio are standards deviation of an expected return. A portfolio is the difference in collecting of an investment that make up the total holding of the investor and shares or in the capital project of a company. Companies and individuals need to find a comfort level with risk and construct a strategy of investing around that level.
US Healthcare System Complexity
The US Healthcare system seems completed compare to other countries because individuals are uninsured or the problems of insurance companies. Many individuals in the United States are covered by government and private insurance programs such as Medicare, Medicaid, or various state and local programs. Francis (2008) discovered that healthcare

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