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Reporting Practices and Ethics

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Reporting Practices and Ethics Paper

There are many components that come with accepted accounting principles of financial reporting practices, and ethical standards in health care finance; such as Corporate compliance, ethics, or even fraud and abuse.
There are four elements of financial management. “Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.” (MSG, 2012).
These elements include, “Investment decisions includes investment in fixed assets (called as capital budgeting).Investment in current assets are also a part of investment decisions called as working capital decisions. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: Dividend for shareholders- Dividend and the rate of it has to be decided. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.” (MSG, 2012).
“Generally Accepted Accounting Principles (GAAP) refers to rules of accounting used to record and report the financial operations of an organization. GAAP is used by a number of organizational types such as publicly-traded firms, private firms, non-profit organizations, and governments. GAAP brings together a collection of standards including laws, common practices, and frameworks.” (Garger, 2010). Some examples of the rules of accounting are that debit equals credit, and assets equal liability plus capital....

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