Olga Jimenez HCA 240 determining financial viability essay

Olga Jimenez HCA 240 determining financial viability essay Olga Jimenez HCA-240 August 18, 2020 Mrs. Sharon Ingram Determining Financial Viability According, to the General Principles of Accounting there are five principles are Accounting entity, Money measurements, Duality, Cost Valuation, Stable monetary unit. Account entity where financial information is recorded and reported. However, money measurements face problems in economic resources. Some examples of scare are supplies, buildings, equipment, money, and money claims. Duality is an important fundamental in accounting all balances must equal the value of liabilities and residual interest which is called assets ( assets = liabilities + net assets). Cost Valuation is there to guide where the cost basis is being used. While Stable monetary does not bring problems to inflation (Cleverley, Song & Cleverley, 2011). Differences in finance, accounting, and financial reporting and working together to meet financial viability. Meeting financial auditing requirements of Centers for Medicare and Medicaid Services. Some of the differences between accounting and finance are they both focused on the flow of money and finding ways to make it grow for the company or institution they are working for. While finance is “broader term for the management of assets and liabilities and the planning of future growth” (Josephson, 2019, para. 2). The financial department's responsibilities are to collect credit and collection policies. They need to be aware when there is a need for cash to guide the finance team to the sources. Accounting is focused on reporting in compliance with the laws and the standards. While financial reporting structures keep records transaction set with codes. They manage the financial business, support audits, and the control of financial transactions. While still providing flexibility for reporting and analysis (Josephson, 2019). There are many differences in finance, accounting, and financial reporting structures. Accounting is responsible for the balance sheets, inventories, supplies, prepaid expense, plant, property, equipment, land, and improvements, buildings, equipment, Construction in progress, allowance for depreciation, assets limited as to use, others assets, current liabilities, accounts payable, Accrued liabilities, etc. Some of the things that are Financial reporting are in charge are financial statements, Director's report, Management discussion, reporting, Capital structures, Notes to the account, earning cells, Corporate Governance Report, Prospectus, and Auditors Report. However, when all of these work together balance sheets represent the record of the assets for which they are working. Assets are things the organization is entitled to like buildings, equipment, and money. For example, “a medically indigent patient might receive services that have an established rate of $100 but be billed only $50. If it is anticipated that the patient will not pay even the $50, then that $50 will show up as a doubtful account allowance. HCF had a doubtful account allowance of $25,302,000 for its accounts receivable in 20X7. This means that the organization had uncollected net patient charges of $95,327,000 ($70,025,000 + $25,302,000) but only expected to collect $70,025,000 (the amount listed in accounts receivable for 20X7)” (Cleverley, Song & Cleverley, 2011, chapter 9, para. 29). Keeping inventories in any healthcare facility in finance and accounting. Can keep track of what is being used in that facility to keep a weel record. Prepaid expenses are payments made in advance or future use within that year finance and accounting still have to keep it in the balance sheet. State Regulatory bodies is a government-funded organization to be in charge of financial markets. To help regulate and investigate the markets of fraud and allow consumers to be treated equally and fairly.