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

a. To explain : The purpose of preparing ‘statement of changes in equity’. Introduction: ‘ 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. 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. Following are the purpose to prepare the statement of changes in equity: It shows the changes in retained of a business. It shows the changes in shareholders’ equity of the firm. It helps to analyze the current value of the firm in the market. b. To discuss : The basic format of ‘statement of changes in equity’. Introduction: ‘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. Equity is the net assets i.e. the difference between the assets and the liabilities. The ‘Statement of retained earnings’ shows the retained profit less the dividends paid to the shareholders. Capital Retained earnings Total Beginning New issues Treasury shares Net income Other comprehensive income Dividends Ending

a. To explain : The purpose of preparing ‘statement of changes in equity’. Introduction: ‘ 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. 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. Following are the purpose to prepare the statement of changes in equity: It shows the changes in retained of a business. It shows the changes in shareholders’ equity of the firm. It helps to analyze the current value of the firm in the market. b. To discuss : The basic format of ‘statement of changes in equity’. Introduction: ‘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. Equity is the net assets i.e. the difference between the assets and the liabilities. The ‘Statement of retained earnings’ shows the retained profit less the dividends paid to the shareholders. Capital Retained earnings Total Beginning New issues Treasury shares Net income Other comprehensive income Dividends Ending

Solution Summary: The author explains the purpose of preparing the ‘statement of changes in equity’.

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 3.8Q

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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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