Discuss the difference between permanently restricted and temporarily restricted net assets.

Submit written responses to these questions.

  1. List several efforts that have been enacted by payors to control costs.
  2. Explain the ramifications of allowing/disallowing an individual to be able to sue his or her HMO.
  3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?

The following questions relate to the statement of operations of not for-profit health care organizations.

  1. What is the analogous for-profit statement called? What are the main sections of the statement of operations?
  2. What are revenues, gains, and other support?
  3. What are expenses and losses?
  4. Funds released from restricted net assets to unrestricted net assets are presented in what section of the statement of revenue, expenses and other activities?

The following questions relate to the statement of changes in net assets.

  1. What is the traditional name for this statement?
  2. What is the purpose of this statement?
  3. What are the main sections of this statement?
  4. Discuss the difference between permanently restricted and temporarily restricted net assets.

The following questions relate to the statement of cash flows of a not-profit health care organization.

  1. What are its main sections?
  2. What is the purpose of this statement?
  3. Where in the financial statements would there be important explanatory information?
  4. In what financial statement would one identify the purchase of long-term investments?
  5. How does the accrual basis of accounting differ from the cash basis of accounti

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