Financial statement terminology.
What are each of the major financial statements commonly called in for-profit health care entities? In not-for-profit health care entities?
Describe the three major sections common to all financial statements.
Balance equation. What is the primary accounting equation that describes the balance sheet of a not-for-profit, business-oriented health care entity?
Balance sheet. The following questions relate to the balance sheet:
What is the name of this statement in not-for-profit health care entities?
What are its main sections in investor-owned health care entities?
What are its main sections in not-for-profit health care entities?
What is deducted from gross patient accounts receivable to arrive at net patient accounts receivable?
What are some examples of deferred revenue?
What kinds of restrictions are put on net assets?
Statement of operations. The following questions relate to the statement of operations of not-for-profit health care entities:
What are the major reductions of revenue taken to get from gross to net patient service revenue?
What are major components of expenses?
What is the performance indicator?
How do net assets get released from restriction?
Statement of changes in net assets. The following questions relate to the statement of changes in net assets:
What is the purpose of this statement?
What are the main sections of this statement?
What is the difference between permanently restricted and temporarily restricted net assets?
Statement of cash flows. The following questions relate to the statement of cash flows of a not-for-profit health care entity:
What are the statement's main sections?
What is the purpose of this statement?
Financial statement element. Where in the financial statements does important explanatory information appear?
Balance sheet. The following are account balances as of September 30, 20X1, for Ray Hospital. Prepare a balance sheet at September 30, 20X1. (Hint: net assets will also need to be calculated.)
Given
Gross plant, property, and equipment $70,000,000
Accrued expenses $6,000,000
Cash $8,000,000
Net accounts receivable $15,500,000
Accounts payable $7,000,000
Long-term debt $45,000,000
Supplies $3,000,000
Accumulated depreciation $5,000,000