Healthcare Finance Exam 2
balance sheet - correct answer ✔✔shows your financial position: what is coming and going out for a
period of time
3 types of information on a balance sheet - correct answer ✔✔assets, liabilities, equity
assets - correct answer ✔✔what the company owns
current assets - correct answer ✔✔those that can be converted into cash in a short time period
fixed assets - correct answer ✔✔such as buildings and equipment
equity - correct answer ✔✔difference between the assets and liabilities
liabilities - correct answer ✔✔companys debts
income statement - correct answer ✔✔also known as profit and loss statement, summarizes a
companies financial performance for a given time interval ( one year )
what does an income statement show - correct answer ✔✔revenue from all sources, payments going
out and indicates the net income on bottom line
liquidity ratio - correct answer ✔✔indicates an organizations ability to meet its current debt obligations
activity ratio - correct answer ✔✔measures internal performance with respect to key activities defined
by management
balance sheet - correct answer ✔✔shows your financial position: what is coming and going out for a
period of time
3 types of information on a balance sheet - correct answer ✔✔assets, liabilities, equity
assets - correct answer ✔✔what the company owns
current assets - correct answer ✔✔those that can be converted into cash in a short time period
fixed assets - correct answer ✔✔such as buildings and equipment
equity - correct answer ✔✔difference between the assets and liabilities
liabilities - correct answer ✔✔companys debts
income statement - correct answer ✔✔also known as profit and loss statement, summarizes a
companies financial performance for a given time interval ( one year )
what does an income statement show - correct answer ✔✔revenue from all sources, payments going
out and indicates the net income on bottom line
liquidity ratio - correct answer ✔✔indicates an organizations ability to meet its current debt obligations
activity ratio - correct answer ✔✔measures internal performance with respect to key activities defined
by management
