HS240
KMcDonald1-Assignment-Unit1

# KMcDonald1-Assignment-Unit1 - 1 Running Head UNIT 1...

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1 Running Head: UNIT 1 ASSIGNMENT Kellie McDonald Unit 1 Assignment Kaplan University HS240-01 Professor Tedeschi

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2 Running Head: UNIT 1 ASSIGNMENT
3 Running Head: UNIT 1 ASSIGNMENT Part 1 1. Accounting Equation- is the bond of assets, liabilities, and net assets organizing sources and resources. Assets = Liabilities + Net Assests The left side of the accounting equation are representation of what resources the company owns. The right side of the equation represents the claim for their resources otherwise known as liabilities which are of use for that particular organization’s creditor or lender. Net assets are used for liabilities. This equation is the key balance of accounting. (Finkler, 2013, p. 34). Example: Gateway Medical Center has \$10,000 in assets. They have \$3,000 in liabilities and \$7,000 in net assets. Asset = Liability+ Net Asset \$10,000 = \$3,000 + \$7,000 \$10,000 = \$10,000 The total amounts on each side of the equation balance out. 2. Asset- Anything with economic value that can help an organization provide care to the patient directly or indirectly. (Finkler, 2013, p. 32). Example: At Gateway Medical Center the purchase of special wardrobe for staff, patients, and visitors, gloves, paper products, beds, monitors, etc. are purchased. For the office supplies and electronics have been purchased. He also hired staff. Preston Andrews, the owner of Gateway Medical Center invested \$30,000 of his own money. Asset = Liabilities + Net Asset \$30,000 = 0 + \$30,000 \$30,000 = \$30,000 Asset and net asset were affected. 3. Liability- Obligations an organization has to outside creditors such as money, employees, financial organizations, or anything else payable. (Finkler, 2013, p. 33).

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• Summer '14
• Balance Sheet, Generally Accepted Accounting Principles, Gateway Medical Center

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