Statement of Operations and Financial Statements 1. List several efforts that have been enacted by payors to control costs. 2. Explain the ramifications of allowing/disallowing an individual to be able to sue his or her HMO. 3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations? Financial statements are commonly called balance sheets, income statement, statement of owner’s equity, or statement of cash flows. The following questions relate to the statement of operations of not for-profit health care organizations. 1. What is the analogous for-profit statement called? What are the main sections of the statement of operations? 0 The analogous for-profit statement is called the Income Statement of a For-Profit Organizaition. 1 The statement of operations is organized into five sections. These sections are: 0 1. Operating income 1 2. Other income 2 3. Excess of revenues, gains, and other support over expenses 3 4. Other items 4 5. Increase in unrestricted net assets 2. What are revenues, gains, and other support? Revenues are the amounts earned by the organization. Gains are acquired by the selling of assets for more than their value on the books, and other support includes items as appropriations from governmental organizations and unrestricted donations. 3. What are expenses and losses? Expenses are a measure of the amount of resources used or consumed in providing a service, not cash outflows. 4. Funds released from restricted net assets to unrestricted net assets are presented in what section of the statement of revenue, expenses and other activities? It will appear in the below-the-line section of the statement of revenue. The following questions relate to the