The Government's Policy of Reducing Payments for Physicians' Services Has

question 201

Multiple Choice

The government's policy of reducing payments for physicians' services has generated a relative

• A) increase in the number of physicians in the program.
• B) reduction in the number of physicians in the program.
• C) reduction in the demand for medical services.
• D) increase in the income of the physicians remaining in the program.

Know the difference between direct and indirect methods for preparing the operating activities section of the statement of cash flows.

Understand how cash flows from financing activities are reported.

Calculate and interpret the cash flow on total assets ratio.

Differentiate between adjustments required for the indirect method of preparing the statement of cash flows.

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Definitions:

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.

Operating Activities

Activities that involve the primary, day-to-day operations of a business, such as sales, supply chain management, and general administrative tasks.

Indirect Method

An approach used in cash flow statement preparation, where net income is adjusted for non-cash transactions and changes in working capital.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.