The Equity Section of the Statement of Net Assets of a Private

question 57

Multiple Choice

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

• A) Fiduciary, Proprietary, and General.
• B) Reserved, Unreserved, and Undesignated.
• C) Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted.
• D) Permanently Restricted, Temporarily Restricted, and Unrestricted.

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Definitions:

Total Assets

The total of everything of value owned by a company, including cash, investments, property, and equipment, as recorded on the balance sheet.

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to produce a profit.

Financial Efficiency

A measure of how well a company utilizes its assets and manages its liabilities to generate income, often assessed through ratios such as return on assets or equity.

EBIT

This metric, known as Earnings Before Interest and Taxes, calculates a business's profitability without taking into account expenses from interest and taxes.