The nurse supervisor has prepared an educational program for the nurse managers regarding the various types of accounting reports that are used throughout the health care organization
Which of the following statements by a nurse manager indicates an accurate understanding of these reports?
1. "The cash-flow statement has two important sections: the revenue section and the expenses section."
2. "The income statement is used to determine whether the organization can pay its bills over a specific time period."
3. "The balance sheet is used to report information about what is owned by the organization and what is owed to others."
4. "The balance sheet is also known as a profit or loss statement."
Answer: 3
Rationale: The income statement is also known as a profit or loss statement. The income statement includes two sections: the revenue section and the expenses section. The balance sheet is known as the position statement. This report is prepared at specific times through the year. It is used to report what is owned by the organization and what is owed to others. It has two sections: assets and liabilities. The cash-flow statement is used to determine whether the organization can pay its bills over a specific time period.
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