Read e-book online 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 health and wellbeing Care administration is the fitting textual content for an introductory path in monetary administration in either undergraduate and graduate courses. As so much classes concentrate on easy accounting, this is often the 1st booklet that specializes in simple accounting. All instance and functions during this publication are particular to the sector of future health care. This booklet is a necessary for a person with a division and the cheap.

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B. Price-level adjusted historical cost—Valuation method that adjusts the asset’s historical cost based on the general rate of inflation. 33 c. Net realizable value—Valuation of an asset based on the amount we would receive if we sold it, net of any costs related to the sale. d. Future profits—This valuation method requires each asset to be valued on the basis of the amount of additional profits that can be generated because we have the asset. e. Replacement cost—Under this method each asset is valued at the amount it would cost to replace that asset.

One proposed solution to the problem is price-level adjusted historical cost (PLAHC, pronounced plack). This method is frequently referred to as constant dollar valuation. A third alternative for the valuation of assets is to measure them at what you could get if you were to sell them. This concept of valuation makes a fair amount of sense. ” Net is used in front of realizable value to indicate that we wish to find out how much we could realize net of any additional costs that would have to be incurred to sell the asset.

The strength of using the historical cost approach is that the information is objective and verifiable. However, the historical cost method also has the weakness of providing outdated information. It does not provide a clear impression of what assets are currently worth. Despite this serious weakness, historical or acquisition cost is the method that generally must be used on audited financial statements in order for them to be in compliance with GAAP. For assets that wear out, such as buildings and equipment, the historical cost is adjusted each year to recognize the fact that the asset is being used up.

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Accounting Fundamentals for Health Care Management by Steven A. Finkler

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