By Steven A. Finkler
Accounting basics for well-being Care administration is the best textual content for an introductory path in monetary administration in either undergraduate and graduate courses. As such a lot classes specialize in uncomplicated accounting, this can be the 1st booklet that makes a speciality of uncomplicated accounting. All instance and purposes during this publication are particular to the sector of wellbeing and fitness care. This booklet is a vital for a person with a division and the cheap.
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As explained, the change in the equation may be stated as follows: ∆A + ∆E = ∆L + ∆R Table 6-1 Healthy Hospital Balance Sheet As of December 31, 2007 Assets Current assets Cash Accounts receivable Inventory Total current assets $104,000 36,000 40,000 $180,000 Fixed assets Plant and equipment Total assets $300,000 Dr. $ 34,000 Inventory $12 Cash $12 To record purchase of inventory for cash. Current liabilities Wages payable Total current liabilities Total liabilities $ 54,000 80,000 $134,000 Net assets Unrestricted net assets Permanently restricted net assets Total net assets Total liabilities & net assets Cr.
Finally, the accountant requires that there must have been some exchange and that the transaction be recorded only to the extent that there has been an exchange. From an accounting point of view, Healthy Hospital has not yet paid anything nor has it received anything. There is no need to record this into the financial history of the organization via the formal process of a journal entry. qxd 2/6/06 9:48 AM Page 41 Chapter 6: Recording Financial Information This doesn’t mean that the item must be totally ignored.
Notes to the financial statements—Vital information supplementing the key financial statements. htm. qxd 2/6/06 9:48 AM Page 27 CHAPTER 5 Valuation of Assets and Equities ASSET VALUATION—HOW DOES THAT OLD BUILDING SHOW UP ON THE BALANCE SHEET? O ne would not expect there to be much controversy over the valuation of balance sheet items. Wouldn’t they simply be recorded at what they’re worth? Unfortunately, it isn’t as easy as that. Consider having bought a car 3 years ago for $25,000. Today it might cost you $28,000 to buy a similar car.