The authors review the role of financial accounting information from the perspective of a radiology executive. They begin by introducing the role of pro forma statements. They discuss the fundamental concepts of accounting, including the matching principle and accrual accounting. The authors then explore the use of financial accounting information in making investment decisions in diagnostic medical imaging. The paper focuses on critically evaluating the benefits and limitations of financial accounting for decision making in a radiology practice.
Corresponding author and reprints: Abraham Seidmann, PhD, William E. Simon Graduate School of Business Administration, University of Rochester, Wilson Blvd., Rochester, NY 14627