Accounting Flashcards
Financial statements communicate:
income statement
statement of cash flow
balance sheet
statement of owner’s equity
Net income
revenue-expense
Change in cash
cash inflow-cash outflows
Included in cash inflow:
patients paying for services
interest received on investments
donors giving contributions
Included in cash outflow:
interest paid on debt
salary and wages paid
payments to vendor for patient supplies
payment to utility company
Assets
resources the organization owns or controls
Liabilities
what the organization owes its creditors
Included in liabilities
payables
unearned revenue
bond financing
Equity
what’s left over for owners
Included in equity
owner’s capital
owner’s withdrawals
net income
Working capital
current assets-current liabilities
Statement of Owner’s Equity
owner’s capital-owner’s withdrawal+revenue-expenses
Charge volume
volume x price
Variance
actual-budget
Equation of assets:
liabilities + equity
