The U.S. GAAP standards in this image
(Found on book Harrison, C., Harrison, W. (2012). Introduction to Health Care Finance and Accounting. Cengage, Clifton Park, NY. ISBN 9781111308674 on page 80) were developed and codified by the Financial Accounting Standards Board (FASB) and accepted by the AICPA (American Institute of Certified Public Accountants). You have probably heard of the AMA (American Medical Association) for physicians. It is a professional organization that promotes and educates physicians. The professional organizations that developed GAAP (Generally Accepted Accounting Principles) are similar to the AMA in that they provide a similar role for accountants providing guidance for how GAAP accounting standards must be applied. 
Case Study 5-1 found on Harrison, C., Harrison, W. (2012). Introduction to Health Care Finance and Accounting. Cengage, Clifton Park, NY. ISBN 9781111308674 on pages 80-81 demonstrates the way professional accountants must use professional judgement when reporting results. Medicine is art and science. “Accounting is more art than science”. (Harrison and Harrison, 2013, p.80)
Read the case and discuss the following:
Which of the approaches in the case most accurately reflects the financial operations of the company for their first year of operation?
What are the two different accounting treatments offered? Do you find both acceptable, and why or why not?
Provided exactly answer for both questions and create one