Accounting Principles and Ethics

Good Essays
Accounting Principles and Ethics A health care organization is believed to be a place where there is care, organization, consistency, and support; a place where patients need to feel and see the unity and harmony within the organization. Health care organizations necessitate this consistency, unity, and organization within because of its dependency on its' patients and to provide the proper care for such a diverse group of individuals. A health care organization also needs consistency and organization in financial management. Proper financial management shows strength in the organization and gives patients more faith. In order to have proper financial management, organization, and consistency, many health care organizations use the Generally Accepted Accounting Principles, corporate compliance, and the value of ethics.
Generally Accepted Accounting Principles The General Accepted Accounting Principles (GAAP) refers to a set of accounting standards that are acknowledged by numerous companies. These principles are set by the Financial Accounting Standards Board. They are used to normalize financial accounting of public companies. These principles are vital for several reasons. They are important to companies and for "those whose stock trades on the stock exchanges" (Raithel, 2005). These standards let investors know of the financial state of the company. They also allow the company to maintain track of its cash flow. Another reason that GAAP is important is for the reason that these standards offer consistency across the companies. When a company follows GAAP, the company becomes comparable financially with other companies that apply GAAP.
Corporate Compliance and Ethics In the beginning, corporate compliance was all about following the written regulations of the company. Now, most companies are trying to mandate a compliance and ethics program. This would offer ethical training to the employees of a company. Most companies are opting to

You May Also Find These Documents Helpful

  • Better Essays

    which support their roles in creating and maintaining successful organizations. A key responsibility managers undertake is the ability to manage financials appropriately. "First and foremost, financial management is a decision science. Whereas accounting provides decision makers with a rational means by which to budget for and measure a business’s financial performance, financial management provides the theory, concepts, and tools necessary to make better decisions” (Gapenski, 2007). For leaders…

    • 1160 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Accounting Principles

    • 779 Words
    • 4 Pages

    Running head: ACCOUNTING PRINCIPLES Generally Accepted Accounting Principles P G HCS 571 June 5, 2013 Generally Accepted Accounting Principles Generally accepted accounting principles (GAAP), are standards and guidelines for financial accounting, and reporting, (Office of Financial Management, 2012). There are guidelines in effect for most organizations; GAAP ensures that the finances of an organization are correct. According to Cleverly, Song, and Cleverly (2011), GAAP describes the “body…

    • 779 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Principles of Accounting

    • 289 Words
    • 2 Pages

    The role of accounting is to allow business owners to make informative decisions. The main objectives of accounting are to maintain a record of business transactions, calculate profit and loss and depiction of financial position. Recording business transactions accurately is essential in accounting. If proper and complete records are kept, it will make it easier to find and correct any errors made. Different officials can also use records for different decision-making purposes. A balance sheet…

    • 289 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Accounting Principles

    • 419 Words
    • 2 Pages

    Accounting Principles The general rules and concepts that govern the Accounting filed are referred to as the Principles of Accounting. The Financial Accounting Standards Board (FASB) using the groundwork of principles and guidelines has formulated these rules. They lay the foundation for sound and ethical accounting practices. The GAAP (Generally accepted accounting principles or "GAAP") consists of three important sets of rules: • The underlying accounting principles • The rules and standards…

    • 419 Words
    • 2 Pages
    Good Essays
  • Good Essays

    principle of Accounting

    • 13796 Words
    • 56 Pages

    PRINCIPLES OF ACCOUNTING(POA)/ACCOUNTING FOR MANAGERS(AFM) Basic Accounting Concepts & Terminologies ACCOUNTING- DEFINITION Accounting means the various technical activities performed by accountants, including financial accounting, bookkeeping and management accounting. Accounting is considered to be as old as money. However in 1494 Lucas Fra Pacoili, an Italian Merchant is universally regarded as the father of modern system of accounting or double entry system of accounting. Accounting has…

    • 13796 Words
    • 56 Pages
    Good Essays
  • Good Essays

    ACC 551 Midterm Exam Solution Follow the link below http://www.tutorialsguider.com/downloads/acc-551-midterm-exam-solution/ ACC 551 Midterm Exam Solution 1. Question :(TCO C) Under current accounting practice, intangible assets are classified as 2. Question :(TCO C) Which of the following intangible assets should not be amortized? 3. Question :(TCO C) The intangible asset goodwill may be 4. Question :(TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful…

    • 603 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Principles of Accounting

    • 5441 Words
    • 22 Pages

    112: PRINCIPLES OF ACCOUNTING 1 ACCOUNTING THEORY NOTES (a) International Accounting Standards and International Financial Reporting Standards. The foreword to accounting standards defines Accounting Standards as Authoritative statements of how particular types of transaction and other events should be reflected in financial statements. Accounting Standards are developed to achieve comparability of financial information between and among different organizations. International Accounting Standards…

    • 5441 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Principles of Accounting

    • 17676 Words
    • 71 Pages

    UNIVERSITY OF LONDON 279 0025 ZA 996 D025 ZA BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diploma in Economics and Access Route for Students in the External Programme Principles of Accounting Wednesday, 5 May 2010 : 10.00am to 1.15pm Candidates should answer FOUR of the following SEVEN questions: QUESTION 1 of Section A, QUESTION 2 of Section B, ONE question from Section C and ONE further question from either Section B or…

    • 17676 Words
    • 71 Pages
    Good Essays
  • Better Essays

    Accounting Ethics

    • 1109 Words
    • 5 Pages

    Assignment 1: Review of Accounting Ethics The New Zealand Institute of Chartered Accounts (NZICA) represents over 33,000 members in New Zealand and overseas. The organization audits private companies and public companies that are members of the organization (Graham, 1960). In October 2012, the organization was found to be practicing breaches of accounting with its members when an employee of the organization was found investing in different companies using client’s money. The loans were supposed…

    • 1109 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Ethics In Accounting

    • 4609 Words
    • 19 Pages

    Running head: ETHICS IN ACCOUNTING Organizational Ethics in Accounting: A Comparison of Utilitarianism and Christian Deontological Principles Katherine Y. Masten A Senior Thesis submitted in partial fulfillment of the requirements for graduation in the Honors Program Liberty University Spring 2012 1 ETHICS IN ACCOUNTING Acceptance of Senior Honors Thesis This Senior Honors Thesis is accepted in partial fulfillment of the requirements for graduation from the Honors Program of Liberty University…

    • 4609 Words
    • 19 Pages
    Powerful Essays