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Healthcare Administration Essay

¶ … Accounting, Cultural Diversity and Healthcare Administration: Law, Ethics and Policy The difference between the cash basis and accrual basis of accounting

The cash basis of accounting is applied when revenues in an income statement are reported in the period cash from the customers is received, and when all the expenses in an income statement are paid for (Warren, Reeve and Duchac, 2014). For example, a payment for a service is recorded in the income statement once the fee from the client is received. Under this basis, the variance that arises from the expenses and revenues is the resultant net profit or loss at that particular period. This method is popular with small businesses that have few debtors and creditors.

The accrual basis of accounting reports revenue on the income statement in the period they are earned. The expenses are also reported once they occur. This method applies the matching principle, where expenses and revenues are reported in the same financial period they occur (Warren, Reeve and Duchac, 2014). For example, a service is recorded in the income statement once it is rendered to the customer. Compared to the cash basis of accounting, net income or loss in this method is calculated after revenues and expenses are matched.

My choice would be to run a multinational corporation, which makes the accrual basis of accounting the most suitable. Large organizations have numerous receivables and payables, and this method will portray...

The matching principle provides more accurate reports for multiple users of the company's financial statements; more specifically, the investors, credit rating agencies and the government.
Socio cultural theory

Developed by Lev Vygotsky, a Russian psychologist, the socio cultural theory explains how society and culture determines how individuals learn and how intelligent they are. Vygotsky believed learning is a social process and how we communicate and interact with others highly influences what we master, and is enhanced by cultural beliefs and attitudes.

Pinney (as cited by Samovar, Porter and McDaniel, 2009) explains that people who do not establish their identities "are faced with identity confusion, a lack of clarity about who they are and their role in life." Having grown up in a small local community, social interactions and cordiality were highly emphasized. Individualism was encouraged and the accepted codes of conduct and social roles were clearly defined. A stable family background has enabled me to become independent and social, which are qualities learnt with time from friends, family and neighbors. Traditional family values shape my esteem and religious faith enables me to make decisions in life and maintain good relationships.

According to Samovar, Porter and McDaniel…

Sources used in this document:
References

Kazmier, J.L. (2009) Health Care Law. Clifton Park, New York: Cengage Learning, Inc.

Samovar, L.A., Porter, R. E & McDaniel, E.R. (2009). Communication Between Cultures (7th Ed.). South Western: Cengage Learning, Inc.

Warren, C.S., Reeves, M. J & Duchac, J. (2014). Financial Accounting (13th Ed.). South Western: Cengage Learning, Inc.
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