Similar to Other Not-For-Profit Entities, Health Care Entities Are Required

question 12

True/False

Similar to other not-for-profit entities, health care entities are required under FASB standards to report program and support functional expenses.

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Definitions:

Retained Earnings

Profits that a company retains rather than distributes to its shareholders as dividends, often used for reinvestment.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Financial Statements

Reports that summarize the financial health, performance, and liquidity of a company including balance sheet, income statement, and statement of cash flows.