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Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

a. To determine: The meaning of GAAP. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. GAAP is a set of accounting procedure, standards and principles that are provided by the financial accounting standard board. In the U.S., the accountant working for public companies should adhere to GAAP at the time of compiling their financial statements. GAAP stands to be a combination of standards set by policy board and a commonly accepted method of recording and reporting of information associated with accounting. It can be concluded that GAAP gives the set of principles for recording the transaction undertaken by a business and reporting the entries in the balance sheet. b. To determine: The purpose of GAAP. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. The primary goal of GAAP is to establish financial information in a standardized manner so as to allow different stakeholders to assess the information available in the financial statements and make important decisions. GAAP strives towards arranging the financial information in such a manner that it makes comparison easier. It also strives towards providing guidance to the professionals and fill the expectation gap which reflects the difference between the expectation of the user from the accounting and information deliver by an accountant. In other words, it provides a set of guidelines and rules for presentation of the statement of finance by accountants in a consistent manner. The purpose of GAAP is to improve comparability, consistency and clarity of financial information. c. To determine: Organization that plays an important role in establishing GAAP. Introduction: GAAP involves set of accounting procedure, standards and principles that are provided by the financial accounting standard board. In the U.S., the accountant working for public companies should adhere to GAAP at the time of compiling their financial statements. The securities and exchange commission of US is the government agency that works independently and responsible for facilitating capital formation, conducting orderly and fair operation of securities markets and providing protection to the investors. In other words, this commission works towards preventing intentional deception and fraud. FASB stands for financial accounting standard board which is a not for profit organization that works independently and responsible for laying down the financial and accounting standard of reporting for the not for profit organization and companies in the US. This organization also works towards improving the set of standard given by GAAP in the interest of the public. It can be concluded that FASB and SEC are two organizations that plays an important role in establishing of GAAP.

a. To determine: The meaning of GAAP. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. GAAP is a set of accounting procedure, standards and principles that are provided by the financial accounting standard board. In the U.S., the accountant working for public companies should adhere to GAAP at the time of compiling their financial statements. GAAP stands to be a combination of standards set by policy board and a commonly accepted method of recording and reporting of information associated with accounting. It can be concluded that GAAP gives the set of principles for recording the transaction undertaken by a business and reporting the entries in the balance sheet. b. To determine: The purpose of GAAP. Introduction: Accounting can be defined as a process wherein financial transactions are recorded. This process summarized, evaluates and provides useful insight about these transactions to tax collection entities, regulators and agencies. Accounting helps in summarizing the cash flows, financial position and operation of the company over an accounting period. The primary goal of GAAP is to establish financial information in a standardized manner so as to allow different stakeholders to assess the information available in the financial statements and make important decisions. GAAP strives towards arranging the financial information in such a manner that it makes comparison easier. It also strives towards providing guidance to the professionals and fill the expectation gap which reflects the difference between the expectation of the user from the accounting and information deliver by an accountant. In other words, it provides a set of guidelines and rules for presentation of the statement of finance by accountants in a consistent manner. The purpose of GAAP is to improve comparability, consistency and clarity of financial information. c. To determine: Organization that plays an important role in establishing GAAP. Introduction: GAAP involves set of accounting procedure, standards and principles that are provided by the financial accounting standard board. In the U.S., the accountant working for public companies should adhere to GAAP at the time of compiling their financial statements. The securities and exchange commission of US is the government agency that works independently and responsible for facilitating capital formation, conducting orderly and fair operation of securities markets and providing protection to the investors. In other words, this commission works towards preventing intentional deception and fraud. FASB stands for financial accounting standard board which is a not for profit organization that works independently and responsible for laying down the financial and accounting standard of reporting for the not for profit organization and companies in the US. This organization also works towards improving the set of standard given by GAAP in the interest of the public. It can be concluded that FASB and SEC are two organizations that plays an important role in establishing of GAAP.

Solution Summary: The author explains that GAAP is a set of accounting procedures, standards and principles that are provided by the financial accounting standard board.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

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Chapter 3, Problem 3.1Q

Chapter 3, Problem 3.3Q

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Chapter 3 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 3 - Prob. 1.1STQ Ch. 3 - Prob. 1.2STQ Ch. 3 - Prob. 2.1STQ Ch. 3 - Prob. 2.2STQ Ch. 3 - Prob. 2.3STQ Ch. 3 - Prob. 3.1STQ Ch. 3 - Prob. 3.2STQ Ch. 3 - Prob. 3.3STQ Ch. 3 - Prob. 3.4STQ Ch. 3 - Prob. 3.5STQ

Ch. 3 - Prob. 4.1STQ Ch. 3 - Prob. 4.2STQ Ch. 3 - Prob. 4.3STQ Ch. 3 - Prob. 5.1STQ Ch. 3 - Prob. 5.2STQ Ch. 3 - Prob. 5.3STQ Ch. 3 - Prob. 6.1STQ Ch. 3 - Prob. 6.2STQ Ch. 3 - Prob. 7.1STQ Ch. 3 - Prob. 7.2STQ Ch. 3 - Prob. 7.3STQ Ch. 3 - Prob. 8.1STQ Ch. 3 - Prob. 8.2STQ Ch. 3 - Prob. 8.3STQ Ch. 3 - Prob. 8.4STQ Ch. 3 - Prob. 9.1STQ Ch. 3 - Prob. 9.2STQ Ch. 3 - Prob. 9.3STQ Ch. 3 - Prob. 10.1STQ Ch. 3 - Prob. 10.2STQ Ch. 3 - Prob. 11.1STQ Ch. 3 - Prob. 11.2STQ Ch. 3 - Prob. 12.1STQ Ch. 3 - Prob. 12.2STQ Ch. 3 - Prob. 12.3STQ Ch. 3 - Prob. 13.1STQ Ch. 3 - Prob. 13.2STQ Ch. 3 - Prob. 13.3STQ Ch. 3 - Prob. 13.4STQ Ch. 3 - Prob. 14.1STQ Ch. 3 - Prob. 14.2STQ Ch. 3 - Prob. 14.3STQ Ch. 3 - Prob. 15.1STQ Ch. 3 - Prob. 15.2STQ Ch. 3 - Prob. 16.1STQ Ch. 3 - Prob. 16.2STQ Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Prob. 3.8P Ch. 3 - Prob. 3.9P

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What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?
These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
What is concern of external users of accounting information in GAAP?

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