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

The major components of a balance sheet . 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. ‘Balance Sheet’ has three components of a company at a particular point of time. These are: Assets are the items that the company own. Liability is the obligation of the company. Equity is the net assets, i.e., the difference between the assets and the liabilities. These can further be explained as: Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Liability is the obligation of the company. These are further classified as current and non-current liabilities wherein current liability is payable within a year and non-current liabilities have a maturity period of more than a year. 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.

The major components of a balance sheet . 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. ‘Balance Sheet’ has three components of a company at a particular point of time. These are: Assets are the items that the company own. Liability is the obligation of the company. Equity is the net assets, i.e., the difference between the assets and the liabilities. These can further be explained as: Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Liability is the obligation of the company. These are further classified as current and non-current liabilities wherein current liability is payable within a year and non-current liabilities have a maturity period of more than a year. 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.

Solution Summary: The author explains the major components of a balance sheet: assets, liabilities, and 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 4 Solutions

Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

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