Accounting Principles and Health Care

invoice Principles and wellness Care Samantha Mrazek HCS 571 March 19, 2012 John Hodnette Accounting Principles and Health Care There are no formal accounting principles that commit to wellness care. However, there are flipper generally sure command principles used in the management of the monetary aspects of health care management (Cleverly, Song & Cleverly, 2011). Understanding the five guiding principles are important in understanding financial knowledge and managerial accounting and how the principles relate to health care (Cleverly et. al.). The five principles include, accounting entity, property measurement, duality, cost valuation, and stable monetary unit. severally principle and how it relates to health care is discussed in the following (Cleverly et.al.). Accounting Entity An accounting entity is the business or corporation that performs clear economic activities, separate from any personal economic endeavors (Accounting Tools, 2010). An accounting entity requires financial records that define financial activities (Cleverly et. al.). In health care, accounting entities great deal be hospitals, clinics, or opposite entities that are part of a larger corporation. Accounting is geared to measure and report the financial activities of the entities under consideration.

Money Measurement Money Measurement is very simply, a way to keep count and records of the incoming and outgoing gross of the accounting entity. This is not an easy task and involves consideration of various(a) issues (Cleverly et. al.). Resources and liabilities have to be considered and calculated to determine accurate money measurement. Resources are also referred to as assets. Scarce resources are things, supplies, money, and other things or resources that are needed by the company in order to generate money. These resources are limited and necessary to the entities execution (Cleverly et. al.). This may include nursing staff for heath care... If you essential to get a full essay, order it on our website: Orderessay

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