Generally Accepted Accounting Principles Paper - Essay Example

The accounting Principles are accounting standards that should be implemented, without exception. The United States Generally Accepted Accounting Principles indicate how to record the entity’s assets, liabilities, capital, revenues, expenses, costs, and profits in the financial reports. The entity includes the healthcare facilities. There are organizations that are tasked with implementing the United States generally accepted accounting principles (Kieso, 2011). The United States Securities and Exchange Commission (SEC) contributes to more understandable United States Generally Accepted Accounting Principles (GAAP).

The American Institute of Certified Public Accountants (AICPA) plays a major role in the successful implementation of the same principles. United States Financial Accounting Standard Board (FASB) contributes a vital part in the propagation and discussion of the complex United States Generally Accepted Accounting Principles. In terms of assets, the United States health care facilities must implement all rules in terms of recording the fair amount of assets during the related accounting period (Glencoe, 2008).

The assets include what the United States health care facilities own. . The United States health care facilities’ own buildings and lots form part of the company’s assets. Next, United States generally accepted accounting principles includes recording all United States health care facilities’ liabilities. The liabilities include short term and long term liabilities. The short term liabilities are the accounts payable and the notes payable amounts. The long term liabilities include the bank loans and other loans where the final payment occurs after the company’s accounting period expires.

Furthermore, United States health care facilities’ United States generally accepted accounting principles include recording all stockholder equity or capital accounts (Horngren, 2009). The stockholders equity accounts include the cash and noncash contributions of the current and future investors. The stockholders equity total is reduced by the company’s net losses. The stockholders’ equity amount is increased by the company’s net profits that are generated within one accounting period.

The United States health care facilities’ United States generally accepted accounting principles includes recording the fair amount of revenues within the related accounting period (Glencoe, 2008). The United States health care facilities must record the amounts equal to the United States health care facilities’ patient services. The healthcare services include the medical operations, medical examinations such as stool exam, vital statistics exams, medical operations, and medical doctors’ medical consultation services.

The United States health care facilities’ United States generally accepted accounting principles include recording all the