Provide 75-word count response to each question. Cite a reference for each question.
1. In terms of financial reporting, what makes a report "consolidated"? Why use that term?
2. A health care bill unpaid may end up in collections (e.g., turned over to a collection agency) and categorized as bad debt. The health care organization then has to account for this turnover.
How do they do that with the financial reports? On which report(s) will you find Provisions for Bad Debt? How does this affect revenues for the organization?
3. Refer to Exhibit 2.9 below. Dunhill received notice from CMS they must install a new EMR. Dunhill received a contractor bid with an estimated cost of $650,000.
The net assets for the organization shows that Dunhill has $2,868,046 in total net assets. Would this be enough information to make the decision? What other statements and line items would help with the decision?
