ACC 281 Week 3 Assisgnment.docx

ACC 281 Week 3 Assisgnment.docx - Methods of Analysis...

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Methods of Analysis Dominique Marcus ACC 281 Accounting Concepts for Health Care Professionals Instructor: Harold Griffin Submitted: September 26, 2017
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Methods of Analysis 2 Methods of Analysis Methods of financial analysis are very important when making financial decisions in any business. I think it would be hard for a business to survive without financial accounting or analyzing accounts because that’s how they keep up with their losses, gross profits, and revenues. The purpose of this paper is to summarize the three methods of analysis that are frequently used in the healthcare field. The three methods are horizontal, vertical, and ratio analysis. This paper will also evaluate the importance of analysis and how healthcare organizations use the three methods of analysis to compare data and make decisions regarding the financial health of their company. Each method of analysis is different but the horizontal and vertical method of analysis is similar. “Vertical and horizontal analyses are also applicable to balance sheet presentations. These analyses can be used to pinpoint shifts in key business elements, such as a buildup of inventory, capital investments, changing debt levels, and so forth. Many of these important trends are additionally monitored by ratios.” (Epstein & Schneider, 2014).
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