Which of the Following Reports Would Be of Most Interest

question 26

Multiple Choice

Which of the following reports would be of most interest to someone who is considering purchasing a large number of shares in a publicly held healthcare corporation?

• A) Monthly budgets for each operating unit
• B) Profitability forecast
• C) Reports to Medicare and Medicaid
• D) Cash flow reports for all patient services

---

Definitions:

Onerous Contract

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

AASB 137

The Australian Accounting Standards Board standard that deals with the treatment of provisions, contingent liabilities, and contingent assets.

Future Operating Loss

A projected loss from future operations, not yet incurred or realized, often considered in impairment assessments and going concern evaluations.

Deferred Liability

A liability that is recorded on the balance sheet and represents a future obligation to pay, such as taxes payable in the future.