NAME: NAME: DATE: HSL 643 Spring 2021 William Leonelli, MS, CPA Mid-term Exam This exam consists of definition questions, short answer questions and two essays. In your answers, please be sure to...

Questions and Answers                                    2
QUESTIONS AND ANSWERS
Table of Contents
Part 1    3
Part 2    4
Part 3    6
References    8
Part 1
1. Capital can be defined as something that adds value or benefit for the possessor. Capital is an asset helping individuals to add value to their belongings. It can be in a number of forms such as machinery in factories, intellectual property that is inclusive of family and relatives, and even financial assets in a business or of an individual.
2. Human Capital can be defined as an intangible asset that comprises of the economic value of a human worker’s experience as well as skills. Human capital are the most valuable assets owned by a business organisation. The various aspects of human capital are a worker’s education, training, skills, intelligence, health condition and other behavioral qualities such as punctuality and honesty.
3. Financial Management in Human Services aims at providing a conceptual framework through which administrative practices can be integrated with fiscal responsibility as well as accountability to ensure better program planning, service monitoring, setting future service priorities, goal determination in order to take better business-oriented decisions. Financial management in human services ensures that there are sufficient funds to execute the plans being formulated.
4. Current Ratio determines whether an organisation has adequate resources to meet the short-term obligations of the firm. Current ratio is being utilized by organisation to analyse their resources so that it can be determined that what else is required to meet the short-term obligations of the business. Current Ratio can be calculated by dividing Current Assets by Current Liabilities. It helps the investors and analysts understand the required amount of maximization of current assets on the balance sheet in order to fulfill the firm’s current debt and other payables.
5. The term GAAP stands for Generally Accepted Accounting Principles. It can be defined as a common set of accounting principles, standards and procedures that are stated by the Financial Accounting Standards Board (FASB). It aims at betterment of clarity, consistency and compatibility of the financial information.
6. Responsibility center is a unit within an organisation that manages all the activities and tasks centered around the particular entity. These units have a specific set of goals and objectives, policies and procedures, staffs as well as financial reports.
7. Financial analysis refers to the process of evaluation of businesses, projects,...