Get Accounting Fundamentals for Health Care Management PDF

By Steven A. Finkler

ISBN-10: 0763726753

ISBN-13: 9780763726751

ISBN-10: 0763761435

ISBN-13: 9780763761431

Accounting basics for wellbeing and fitness Care administration is the appropriate textual content for an introductory direction in monetary administration in either undergraduate and graduate courses. As such a lot classes specialize in uncomplicated accounting, this is often the 1st e-book that makes a speciality of simple accounting. All instance and purposes during this publication are particular to the sector of healthiness care. This publication is a vital for someone with a division and the cheap.

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Extra info for Accounting Fundamentals for Health Care Management

Example text

When we say that credit means right, we are saying that credits increase anything on the right side of this equation. Of course, that leaves us with a slight problem. What do we do if something on either side decreases? We have to reverse our terminology. An account on the left is decreased by a credit and an account on the right is decreased by a debit. Debits and credits are mechanical tools that aid bookkeepers. Debits and credits have no underlying theoretical or intuitive basis. In fact, the use of debits and credits as explained here may seem counterintuitive.

At least we can get outside and hire independent appraisers to evaluate the realizable value of buildings and equipment. However, under this method, estimates of future profit streams require the expertise of the organization’s own management. Even with that expertise and an honest attempt to determine the future profits, the estimates often turn out to be off by quite a bit. Future Profits The replacement cost approach is essentially the reverse of the net realizable value method. Rather than considering how much we could get for an asset were we to sell it, we consider how much it would cost us to replace that asset.

6,000 2. January 18. The hospital mails a check to its supplier for $30,000 of the $34,000 it owed them at the end of last year. ) This requires a journal entry showing a decrease in the cash balance and a reduction in the A/P liability to our supplier. ∆A + ∆E = ∆L Cash - 30,000 Accounts Payable Cash + ∆R = A/P - 30,000 Dr. $30,000 Cr. $30,000 Notice that when we look at the impact on the equation, both cash and accounts payable are negative numbers; each decreases by $30,000. In the journal entry format, negative signs are never needed or used.

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Accounting Fundamentals for Health Care Management by Steven A. Finkler

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