Abraham has just taken a new job as a health care manager at a large hospital. During the interview process, he was told that one of his responsibilities is to analyze the organization's financial statements and determine the average collection period (ACP). He determines that the hospital's ACP is 43 days. The industry average is 23 days. Abraham emails his superior asking if this is a cause for concern.

• Do you agree with reasoning and decisions made in each scenario? Why or why not?
• Are these scenarios in the realm of managerial accounting, financial accounting, or both? Why do think this?
• How would you proceed in each situation? What information would you want to have, and why?