Financial reporting is a vital part of decision making in healthcare o

QUESTION

Financial reporting is a vital part of decision making in healthcare organizations. Which report would be used to show a snapshot of the bottom line?

a. Balance sheet or statement of financial position
b. Cash flow statements
c. Assets, liabilities, and equity
d. Income statement or statement of operation

ANSWER:

ANS: D
Income statements reflect the following formula: revenue – expenses = profit. This is often referred to as the bottom line. The balance sheet, on the other hand, reflects an organization’s assets, liability, and equity.