Discussion Board
Understanding the basic financial statements is crucial for effective performance in any healthcare management position today. The financial statements are presented in detail in your textbook.
Select any one of the financial statements, explain its primary purpose, and discuss important aspects of that statement. Also, comment on how the statement you selected relates to other key financial statements.
Please include the name of the person or question to which you are replying in the subject line. For example, “Tom’s response to Susan’s comment.”
ALSO PLEASE REPLY TO ANOTHER STUDENTS COMMENT BELOW
Tad:
The Statement of Operations serves to detail the expenses and revenues of the business for the given time period. This provides a way to compare how the company is spending and gaining money. Depending on how detailed the report is, the depth of the information can be very detailed. The statement is broken down into two major sections, revenues, and incomes. The revenue section can be used to compare current income against the previous years, noting changes and finding the beginnings of trends. The expenses section details how the business is spending money. This can be useful in determining if the business needs to find more efficient ways of spending funds.
The Statement of Operations fits in with other financial statements by documenting the ins and outs of the business. The balance sheet is a clear overview of the business and the statement of operations dives deeper into specifics about income and expense. The statement of changes concerns the assets of the company while the statement of cash flow shows where and how the business spend available cash on hand.
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