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Select a tool that is essential to the analysis of an organization’s financial status and explain it in detail. Using this tool as a template, create an application of it in an imaginary organization. Examples include, but are not limited to, balance sheets, operating statements, statements of changes in net assets, statements of cash flows, total assets, liabilities, and owners equities.

Healthcare organizations have formalized accounting systems that track the financial status of the organization. Financial managers need to perform the necessary task of compiling financial reports, which are sets of financial statements. There are numerous tools that are essential for understanding the financial condition of an organization.

Using the readings for the week, the Online Library, and the Internet, create an accounting project paper.

Cover the following:

Select a tool that is essential to the analysis of an organization’s financial status and explain it in detail.
Using this tool as a template, create an application of it in an imaginary organization. Examples include, but are not limited to, balance sheets, operating statements, statements of changes in net assets, statements of cash flows, total assets, liabilities, and owners’ equities.
Explain the example tool in detail. One option is to use generally accepted accounting principles (GAAP) to highlight various sections of the tool. Another option might be to provide a detailed explanation of fund accounting, highlighting various sections of the example. Be sure that the tool matches the explanatory methods used.

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