Assignment: American Accountants Institute

Assignment: American Accountants Institute
ORDER NOW FOR ORIGINAL AN ORIGINAL PAPER ASSIGNMENT: Assignment: American Accountants Institute   
Assignment: American Accountants Institute
At the organizational level, establishing the facts (the first step) usually relates to a review of the organization’s key financial statements, including the balance sheet, statement of operations, statement of changes in net assets, and statement of cash flows. As recom- mended by the American Institute of Certified Public Accountants (AICPA), healthcare organizations with permanent controlling financial interests in other healthcare organiza- tions should prepare consolidated financial statements to properly report the relationship (AICPA 2012). Before they undertake financial analysis, investors and creditors may require that independent auditors review the financial statements to confirm their accuracy.
The second step, comparing the facts about the organization over time and with facts about other, similar organizations, includes ratio analysis, horizontal analysis, and verti- cal analysis. Ratio analysis, which was introduced in chapter 1, evaluates an organization’s performance by computing the relationships of important line items found in the financial statements. There are four kinds of ratios: liquidity, profitability, activity, and capital structure.
Horizontal analysis evaluates the trend in the line items by focusing on the percent- age change over time. Vertical analysis evaluates the internal structure of the organization by focusing on a base number and showing percentages of important line items in relation to the base number. When ratio analysis, horizontal analysis, and vertical analysis have been completed, the organization can compare present ratios, trends, and percentages to its past ratios, trends, and percentages. The organization can also develop industry comparisons
horizontal analysis
that compare the organization’s present ratios, trends, and percentages to those of other, similar organizations.1
The third step of financial analysis, using perspective and judgment to make deci- sions, takes into account the information obtained in the first two steps, in addition to information derived from the decision maker’s unique perspective and judgment, to make the decision.
You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.
Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.
Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.
The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.
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