About This Chapter
Accounting & Income Statements in Healthcare - Chapter Summary
In this chapter, we've included a series of lessons on accounting and income statements in healthcare. Subjects such as the purpose of an income statement and the concept of revenue are covered here by our professional instructors. We've made sure you can work at your own pace as you access these materials on any mobile device or computer 24/7. Use the Dashboard to keep tabs on your progress and to submit any questions that come up along the way to one of our experts. Use this chapter to make sure you can:
- Differentiate between accrual and cash-basis accounting
- Discuss the components and format of an income statement
- Define revenue
- Outline operating and non-operating income within a healthcare organization
- Explain net income and its formula
1. The Differences Between Accrual & Cash-Basis Accounting
There are two accounting methods that companies can choose from when deciding how they want their books done. They are cash basis and accrual basis. In this lesson, you will learn the differences between the two.
2. What Is an Income Statement? - Purpose, Components & Format
There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is, and why it is important in accounting.
3. What Is Revenue? - Definition & Concept
Revenue is essential for nearly every type of business. In this lesson, you'll learn what revenue is, what it's not, and how it fits into the overall income of a business. You'll also have a chance to reinforce your knowledge with a short quiz.
4. Operating Income within a Healthcare Organization
You may be surprised that a positive income statement doesn't always mean healthy profits. In this lesson, we'll examine the components of operating income and how it's used by stakeholders to determine a healthcare organization's profitability.
5. Non-Operating Income within a Healthcare Organization
When calculating an organization's profits, note that all income sources are not the same. In this lesson, you'll learn how to identify sources of non-operating income and why they're not considered part of an organization's profitability.
6. What Is Net Income? - Definition & Formula
Income does not always mean profit. In this lesson, you'll learn what net income is and how to calculate it. You'll also have a chance to take a brief quiz after the lesson to reinforce your knowledge.
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Other chapters within the Health 305: Healthcare Finance & Budgeting course
- Introduction to Healthcare Finance
- Organizational Structure in Healthcare
- Healthcare Organizations & Services
- Financial Reporting in Healthcare
- Health Insurance & Reimbursement
- Estimating Healthcare Costs
- Healthcare Financial Management
- Using Balance Sheets in Healthcare Finance
- Financial Assessment in Healthcare
- Healthcare Planning & Budgeting
- Project Costs & Evaluation in Healthcare
- Healthcare Staffing Needs & Forecasting
- Trends in Healthcare
- Required Assignment for Health 305