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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

Difference between cash flow and net income. Introduction: Net income reflects the earnings or profit of the company. Net income is shown at the bottom of the income statement after factoring all operating cost, additional income streams, debts and expenses, therefore net income is referred to as the bottom line. Net income gives a projection about the profitability of the organization during an accounting period, whereas cash flow give projection about problems associated with liquidity, the value of the company and helps in scrutinizing the income ascertained through accrual accounting. Cash flow refers to the money which flows inside and outside of the organization for carrying out different business activities. Net profit or income is the money earned by an organization after factoring all expenses incurred for generating the revenue. Manipulation can be done easily in the net income; however, it is a bit difficult to manipulate cash flow under the GAAP. The net income statement reflects the actual earning of the company for a particular period of time, whereas cash flow statement reflects the sources of cash flow and the details about the heads where it has been utilized.

Difference between cash flow and net income. Introduction: Net income reflects the earnings or profit of the company. Net income is shown at the bottom of the income statement after factoring all operating cost, additional income streams, debts and expenses, therefore net income is referred to as the bottom line. Net income gives a projection about the profitability of the organization during an accounting period, whereas cash flow give projection about problems associated with liquidity, the value of the company and helps in scrutinizing the income ascertained through accrual accounting. Cash flow refers to the money which flows inside and outside of the organization for carrying out different business activities. Net profit or income is the money earned by an organization after factoring all expenses incurred for generating the revenue. Manipulation can be done easily in the net income; however, it is a bit difficult to manipulate cash flow under the GAAP. The net income statement reflects the actual earning of the company for a particular period of time, whereas cash flow statement reflects the sources of cash flow and the details about the heads where it has been utilized.

Solution Summary: The author explains the difference between cash flow and net income. Net income gives a projection about the profitability of the organization during an accounting period, while cash flows help in scrutinizing the income ascertained through accrual accounting.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 3, Problem 12.3STQ

Chapter 3, Problem 13.2STQ

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Chapter 3 Solutions

Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 3 - Prob. 1.1STQ Ch. 3 - Prob. 1.2STQ Ch. 3 - Prob. 2.1STQ Ch. 3 - Prob. 2.2STQ Ch. 3 - Prob. 2.3STQ Ch. 3 - Prob. 3.1STQ Ch. 3 - Prob. 3.2STQ Ch. 3 - Prob. 3.3STQ Ch. 3 - Prob. 3.4STQ Ch. 3 - Prob. 3.5STQ

Ch. 3 - Prob. 4.1STQ Ch. 3 - Prob. 4.2STQ Ch. 3 - Prob. 4.3STQ Ch. 3 - Prob. 5.1STQ Ch. 3 - Prob. 5.2STQ Ch. 3 - Prob. 5.3STQ Ch. 3 - Prob. 6.1STQ Ch. 3 - Prob. 6.2STQ Ch. 3 - Prob. 7.1STQ Ch. 3 - Prob. 7.2STQ Ch. 3 - Prob. 7.3STQ Ch. 3 - Prob. 8.1STQ Ch. 3 - Prob. 8.2STQ Ch. 3 - Prob. 8.3STQ Ch. 3 - Prob. 8.4STQ Ch. 3 - Prob. 9.1STQ Ch. 3 - Prob. 9.2STQ Ch. 3 - Prob. 9.3STQ Ch. 3 - Prob. 10.1STQ Ch. 3 - Prob. 10.2STQ Ch. 3 - Prob. 11.1STQ Ch. 3 - Prob. 11.2STQ Ch. 3 - Prob. 12.1STQ Ch. 3 - Prob. 12.2STQ Ch. 3 - Prob. 12.3STQ Ch. 3 - Prob. 13.1STQ Ch. 3 - Prob. 13.2STQ Ch. 3 - Prob. 13.3STQ Ch. 3 - Prob. 13.4STQ Ch. 3 - Prob. 14.1STQ Ch. 3 - Prob. 14.2STQ Ch. 3 - Prob. 14.3STQ Ch. 3 - Prob. 15.1STQ Ch. 3 - Prob. 15.2STQ Ch. 3 - Prob. 16.1STQ Ch. 3 - Prob. 16.2STQ Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Prob. 3.8P Ch. 3 - Prob. 3.9P

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