Generally accepted accounting principles, (GAAP) refers to a common set of accounting principles, standards and procedures that all companies and public organizations use to prepare and standardize the reporting of financial statements, such as balance sheets, income statements…
Nevertheless, only specific generally accepted accounting principles apply in the health sector where they define how healthcare entities prepare their financial statements (Kramer, 2014). As such, this paper will only address the principle of creditworthiness, disclosing assets and liabilities, establishing financial stability, and bargaining power, which have a direct relationship with health care (Richards, 2014). I will describe each of the named principle, define its intention, and relate it to health care.
Creditworthiness is a generally accepted accounting principle that applies in health care. This principle compels accounting officers to compare the reference business with other businesses within the same industry (Richards, 2014). This comparison may relate to the profitability of the business, revenues, operating costs, market position, and assets and liabilities. By comparing the reference business with other businesses in the same industry, this principle seeks to establish the performance of the reference business with respect to the performance of the industry. This helps in determining the credit worthiness of the reference business in comparison with other businesses in the same industry. This principle is applicable in the health sector in that it allows insurance agents and financial institutions that provide services to the health aid business to compare this business with other businesses in the health and medical industry with an aim of establishing its creditworthiness (Richards, 2014). This helps in measuring the financial strength of a business or organization in the health sector. Indeed, this principle helps in comparing the revenues of different companies in the health sector. Through this principle, we can establish the projected revenues in the health sector, which defines creditworthiness.
Establishing financial stability is another generally accepted ...
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(Finance Research Paper Example | Topics and Well Written Essays - 1000 Words)
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However, it cannot be used for specific projects because each project has it own operating risk. b) Book weights should be used to calculate WACC because the market value is subjective and changes regularly. c) Current (marginal) cost rates should be used because WACC is used mainly to make investment decisions and these decisions depend on expected future cash flow from projects in relation to the cost of new capital.
Adding, governments have played significant role in public spending. The gradual transition from old age agricultural economy into new age industrial economy created new type of problems. Urbanization and modernization leads to radical socio-economic changes which in turn cause new conflicts and tensions while erasing old age fraternal security in the society.
This however, has led to utilizing the stock exchange indicators of the three distinctive countries i.e. Abu Dhabi, Qatar and Saudi Arabia. We ascertain that all the preceding three markets eliminates aught assumption that the returns adopt a convention statistical distribution.
Prediction 15 Conclusion 16 Name of the Student Name of the Professor Subject Date Introduction The research report presents a general study and evaluation of the performance of an American company called American Eagle Outfitters (Bethel 20). The performance of American Eagle Outfitters is evaluated using four different types of analysis which is distribution analysis, marketing analysis, performance analysis and subsequent projection of the results for the future.
This is especially significant due to its timing, with the Islamic financial movement appearing in an era of the wider Islamic resurgence, accompanied by moral implications that characterize the Islamic approach to finance, banking and money (Sait & Lim 73).
Tversky and Kahneman 1125, argue that heuristic principles are significant especially in simplifying the wide range of tasks that are associated with prediction of occurrence of events. However, these principles sometimes lead to errors
Management of finance is very significant for any company as it is connected to the resources of the company. By effectual management of finances, the managers can protect their company from unstable mismanagement of funds. Zain Telecom is a leading operator of mobile with a viable footprint in the eight African and Middle Eastern countries.