1. Why is the GAAP concept of 7. objective measurement paramount in understanding asset valuation? 2....

 

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1. Why is the GAAP concept of 7. objective measurement paramount in understanding asset valuation? 2. Describe mark-to-market asset valuation. 3. Discuss how financial assets are classified by levels in the notes to the financial statements. 4. Distinguish between net realizable value and replacement cost. 5. 6. What are the advantages and disadvantages to measuring asset values based on expected future profits? What are the strengths and weaknesses of using the historical cost approach for valuation of assets? How have GAAP changed over time for financial assets such as stocks and bonds? 8. 9. How does a health care provider indicate the obligation to provide care under a managed care contract that has been paid in advance? Suppose a health care organization buys supplies from a vendor but has not yet paid for the supplies. The vendor will give a 5% discount to the health care organization if it pays the invoice within 20 days as an incentive to pay quickly. What is the liability that the health care organization should record on its balance sheet: the full cost of the invoice or the discounted amount? In a publicly traded organization, why might a company have a market value that differs from the owners' equity on the balance sheet? 1. Why is the GAAP concept of 7. objective measurement paramount in understanding asset valuation? 2. Describe mark-to-market asset valuation. 3. Discuss how financial assets are classified by levels in the notes to the financial statements. 4. Distinguish between net realizable value and replacement cost. 5. 6. What are the advantages and disadvantages to measuring asset values based on expected future profits? What are the strengths and weaknesses of using the historical cost approach for valuation of assets? How have GAAP changed over time for financial assets such as stocks and bonds? 8. 9. How does a health care provider indicate the obligation to provide care under a managed care contract that has been paid in advance? Suppose a health care organization buys supplies from a vendor but has not yet paid for the supplies. The vendor will give a 5% discount to the health care organization if it pays the invoice within 20 days as an incentive to pay quickly. What is the liability that the health care organization should record on its balance sheet: the full cost of the invoice or the discounted amount? In a publicly traded organization, why might a company have a market value that differs from the owners' equity on the balance sheet?

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Answers to Accounting Questions 1 Importance of Objective Measurement in Asset Valuation The GAAP concept of objective measurement is paramount in asset valuation because it strives to present a neutr... View the full answer