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question accounting fundamentals for healthcare management chapter 8 testing your kn 4287773

Question

Accounting Fundamentals for Healthcare Management , Chapter 8, Testing your knowledge

1. How do the ledger and journal entries interact with one another?

2. Explain how the ledger provides the information needed to prepare the balance sheet.

3. Explain how the ledger provides the information needed to prepare the operating statement.

4. What is the main purpose of the statement of cash flows?

5. What are the three categories used within the statement of cash flows? Why are these categories important for understanding an organization's cash situation?

6. Differentiate between the direct and the indirect methods for preparing and presenting the statement of cash flows.

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