Financial Management Paper

591 Words Nov 4th, 2014 3 Pages
Statement of Operations and Financial Statements 1. List several efforts that have been enacted by payors to control costs. 2. Explain the ramifications of allowing/disallowing an individual to be able to sue his or her HMO. 3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations? Financial statements are commonly called balance sheets, income statement, statement of owner’s equity, or statement of cash flows. The following questions relate to the statement of operations of not for-profit health care organizations. 1. What is the analogous for-profit statement called? What are the main sections of the statement of operations? …show more content…
What is the purpose of this statement? The purpose of statement of changes in net assets is to explain why there was a change from one year tit h next in the net assets of the section of the balance sheet. 3. What are the main sections of this statement? There are three sections of this statement. They are: 1. Unrestricted net assets that summarize the information from the statement of operations. 2. Temporarily unrestricted net assess 3. Permanently restricted net assets 4. Discuss the difference between permanently restricted and temporarily restricted net assets. The difference between permanently restricted and temporarily restricted net assets is based on how the assets are given and used. Permanently restricted assets are assets that are donated items that have limits on it use. There are donor-imposed stipulations that do not expire by time or by removal from the organization. Temporarily restricted net assets are assets that are donated items that can expire with time or by organization removal. The following questions relate to the statement of cash flows of a not-profit health care organization. 1. What are its main sections? The main sections of this statement are: 1. Cash flows from operating activities 2. Cash flows from investing activities 3. Cash flows from financing activities 4. Net increase (decrease) in cash and cash equivalents 2. What is the purpose of this statement? The purpose of

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