Explain which method is preferable for the health care organizations- accrual or cash-basis accounting.
Explain which method is preferable for the health care organizations- accrual or cash-basis accounting.
Homework Answers
Any industry on an ideal basis should follow the accrual method of accounting. The accrual method is also preferable for the healthcare industry where payments aren't improbable as they are in other professional industries for example accounting or taxation. As a general practice payment is received on an immediate basis whenever the bill is made in contrast you might be not be making payments to your creditors on an immediate basis and accrual method would be more beneficial for you from tax purpose as well.
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Explain which method is preferable for the health care
organizations- accrual or cash-basis accounting.
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues...
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues and expenses when cash is received or paid Cash basis accounting reports revenues and expenses in the period in which a service has been performed when cash is received or paid in the period in which a service has been performed
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple...
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple Choice 1 O If payment is received at the same time a service is provided, it does not matter whether cash basis accounting or accrual basis accounting is used; both would record the transaction with the same journal entry The cash basis of accounting works best when a lengthy delay exists between the timing of cash flows and the underlying business activities to which...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Which of the following statements is true of accrual basis accounting?
Which of the following statements is true of accrual basis accounting? Accrual basis accounting records revenue only when cash is received. Accrual basis accounting always results in greater net income than cash basis accounting. Accrual basis accounting records expenses only when cash has been paid for them. Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP).
Explain the difference between accrual based accounting and cash basis accounting. -What is the revenue recognition...
Explain the difference between accrual based accounting and cash basis accounting. -What is the revenue recognition principle? -What is an accrual? -What is an unearned revenue? -What is the trial balance used for?
Required 1. Explain the difference between a cash basis and an accrual basis measure of performan...
Required 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Why, in most cases, does accrual basis net income provide a better measure of performance than net operating cash flow? 3. Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting.
Required 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Why, in most cases, does accrual basis net...
Which basis of accounting, cash basis or accrual basis, provides a better economic indicator of how...
Which basis of accounting, cash basis or accrual basis, provides a better economic indicator of how profitable a company is? a. cash basis b. it depends on what industry a company is in c. accrual basis d. cash or accrual are equally good economic indicators 2. What two major sources of a company's financing are reflected on the balance sheet? a. borrowing, owner investment b. public financing, private financing c. venture capital, borrowing d. common stock, preferred stock
Describe accounting methods, cash basis and accrual basis.
Describe accounting methods, cash basis and accrual basis.
Between the cash basis and accrual basis, which method provides a better picture of the overall...
Between the cash basis and accrual basis, which method provides a better picture of the overall profitability of a company?
Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the...
Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the net increase during the accounting period of the Accounts Receivable Accrued Expenses Payable No No No Yes Yes No Yes No Yes No Yes Yes
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues and expenses when cash is received or paid Cash basis accounting reports revenues and expenses in the period in which a service has been performed when cash is received or paid in the period in which a service has been performed
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple Choice 1 O If payment is received at the same time a service is provided, it does not matter whether cash basis accounting or accrual basis accounting is used; both would record the transaction with the same journal entry The cash basis of accounting works best when a lengthy delay exists between the timing of cash flows and the underlying business activities to which...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Required 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Why, in most cases, does accrual basis net income provide a better measure of performance than net operating cash flow? 3. Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting.
Required 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Why, in most cases, does accrual basis net...
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