HCS/577 DISCUSSION QUESTION - 26398

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Edwinesj
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1-      Some generally accepted accounting principals (GAAP) apply only to health care, and there are many health care organizations that use other comprehensive bases of accounting when GAAP does not apply—for instance, an HMO that must report to a government regulatory agency using that agency’s guidelines instead of GAAP. What is so unique about health care that it would cause accounting principles to change?

2-      To analyze health care organizations, many authorities use financial ratios such as current ratio, quick ratio, days of cash on hand, accounts receivable days, debt service coverage, liabilities to net worth (or liabilities to equity), operating margin, and return on investment. What is the value of these eight ratios to health care organizations?

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Week 2

1-      Some generally accepted accounting principals (GAAP) apply only to health care, and there are many health care organizations that use other comprehensive bases of accounting when GAAP does not apply—for instance, an HMO that must report to a government regulatory agency using that agency’s guidelines instead of GAAP. What is so unique about health care that it would cause accounting principles to change?

Health care have been known to be a very unique field in many aspects. One of the aspects that can s