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. Furthermore, to meet the Centers for Medicare and Medicare Services auditing requirements they must meet financial transactions that are in the record (Accounting vs. Auditing, 2020). What is an Audit? When a person hears the word Audit being this brings fear to them it is a simply closer examination of financial records and accounting to verify that they meet state law. There are many types of audits as financial audits, compliance audits, economy and efficiency audits, program result audits. There are two ways of financially reporting nominal (unadjusted) dollars and constant dollars. “The unadjusted historical cost (HC) method represents the present method used by accountants; the other three methods are alternatives that provide some degree of inflationary adjustment not present in the HC method. The HC-general price level adjusted (HC-GPL) method is often referred to as constant dollar accounting, whereas the current value-general price level adjusted (CVGPL) the method is referred to as current cost accounting” (Cleverley, Song & Cleverley, 2011, chapter 10, para. 15). The Centers for Medicare and Medicare Services implemented a general ledger to help with the Accounting system to help with the financial management and enhance the financial structure of ensuring proper and reliable data (Fact sheet, 2005). Lastly, 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). 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. 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. Many roles in finance have changed tremendously in the ways of borrowing funds, investing excess cash resources of the firms. In a larger sense, the accountant provides financial analysis to the finance department (Kagan, 2020). References Accounting vs. Auditing. (2020). Retrieved from auditing/ Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of health care finance (7th ed.). Sudbury, MA: Jones & Bartlett bartlett/2010/essentials-of-health-care-finance_ebook_ Fact sheet NEW ACCOUNTING SYSTEM HELPS MEDICARE ACCOUNTABILITY. (2005). Retrieved from helps-medicare-accountability Josephson, A. (2019, July 28). Difference Between Accounting and Finance. Retrieved from Kagan, J. (2020, March 29). Centers for Medicare & Medicaid Services (CMS). Retrieved from