Please Write Short Discussion Essays To Answer The Following

Please Write Short Discussion Essays To Answer the Following Questions

Please write short discussion essays to answer the following questions. Each discussion post should be 250 words. Its due in 12 hours. NB: I need 100% original work. Please be brief and precise.

Paper For Above instruction

Discussion 1: Debit/Credit

The double-entry accounting system is fundamental to accurately recording financial transactions. This method requires that every transaction affects at least two accounts, with debits and credits used to record increases or decreases in account balances. Debits are entries that typically increase assets and expense accounts, while credits generally increase liabilities, equity, and revenue accounts. For example, when a company receives cash, the cash asset account is debited, increasing its balance. Conversely, when the company pays an expense, the expense account is debited, also increasing the expense. Credits serve as the counterbalance: for assets like cash, a credit decreases the asset balance, reflecting cash outflow; for liabilities, a credit increases the liability balance, indicating an obligation incurred. Understanding how debits and credits impact accounts is crucial for maintaining accurate financial records. For asset accounts, debits typically increase value; for liability accounts, credits increase the owed amount. Similarly, revenue accounts are increased by credits, and expense accounts by debits. This dual recording ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced after every transaction, providing a clear and consistent financial picture. Proper application of debits and credits thereby enhances transparency and accuracy in financial reporting, enabling managers and stakeholders to make informed decisions (Harrison et al., 2018).

Discussion 2: Inventory Costs

Inventory management poses significant challenges for healthcare managers, mainly due to the need for accurate costing methods to ensure financial stability and supply chain efficiency. Two common inventory valuation methods are FIFO (First-In, First-Out) and LIFO (Last-In, First-Out). FIFO assumes that the earliest acquired inventory is sold first, thus assigning older costs to cost of goods sold (COGS) and newer costs to ending inventory. During periods of rising prices, FIFO results in lower COGS, higher profits, and higher ending inventory values, which can inflate asset values and taxable income (Garrison et al., 2021). Conversely, LIFO assumes the latest inventory is sold first, assigning newer, often higher costs to COGS, leading to higher COGS and lower profits during inflationary times, which can reduce taxable income and inventory valuation. The choice between FIFO and LIFO impacts financial statements distinctly: FIFO tends to present higher assets and profits, advantageous for attracting investors, while LIFO can provide tax benefits due to lower reported income. However, LIFO is not permitted under International Financial Reporting Standards (IFRS), limiting its use internationally. For healthcare managers, understanding these implications helps optimize inventory valuation, control costs, and improve financial reporting accuracy. Effective inventory management through appropriate method selection directly influences financial health, operational efficiency, and strategic planning within healthcare organizations (Shah et al., 2020).

References

• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2021). Managerial Accounting (17th ed.). McGraw-Hill Education.
• Harrison, W. T., Horngren, C. T., & Thomas, C. W. (2018). Financial & Managerial Accounting (8th ed.). Pearson.
• Shah, R., Maher, M., & Abbas, R. (2020). Inventory Management in Healthcare: Financial Implications and Strategies. Journal of Healthcare Management, 65(4), 250-260.