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Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

The purpose of preparing a balance sheet. Introduction: The users of financial statements review the financial statements of the company and perform appropriate analysis to take appropriate decisions, whenever required. ‘Balance Sheet’ shows the liabilities, assets and equity of a company at a particular point of time. Assets are the items that the company own, liability is the obligation of the company and equity is the net assets, i.e., the difference between the assets and the liabilities. It helps the users of financial statements to perform appropriate analysis and evaluate the financial position of a company. There are three components of balance sheet: Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Liability is the obligation of the company. These are further classified as current and non-current liabilities wherein current liability is payable within a year and non-current liabilities have a maturity period of more than a year. Equity is the net assets i.e. the difference between the assets and the liabilities. ‘Statement of retained earnings ’ shows the retained profit less the dividends paid to the shareholders. The ending balance of retained earnings statement is recorded under equity on balance sheet.

The purpose of preparing a balance sheet. Introduction: The users of financial statements review the financial statements of the company and perform appropriate analysis to take appropriate decisions, whenever required. ‘Balance Sheet’ shows the liabilities, assets and equity of a company at a particular point of time. Assets are the items that the company own, liability is the obligation of the company and equity is the net assets, i.e., the difference between the assets and the liabilities. It helps the users of financial statements to perform appropriate analysis and evaluate the financial position of a company. There are three components of balance sheet: Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Liability is the obligation of the company. These are further classified as current and non-current liabilities wherein current liability is payable within a year and non-current liabilities have a maturity period of more than a year. Equity is the net assets i.e. the difference between the assets and the liabilities. ‘Statement of retained earnings ’ shows the retained profit less the dividends paid to the shareholders. The ending balance of retained earnings statement is recorded under equity on balance sheet.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

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Chapter 4, Problem 1.2STQ

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EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

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Does the order in which financial statements are prepared matter?
How do revenues and expenses affect the accounting equation?
Identify the sources of the information needed to prepare the balance sheet.

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