The "equity" section (assets minus liabilities) of a health care entity's balance sheet or statement of net position will indicate whether the health care organization is for-profit, not-for-profit, or governmental.

Question

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The equity section of a health care entity's balance sheet or statement of net position indicates whether the organization is for-profit, not-for-profit, or governmental because it reflects the ownership interest in the organization. For-profit organizations have shareholders who own the organization and receive profits, while not-for-profit organizations do not have shareholders and any profits are reinvested in the organization. Governmental organizations are owned by the government and do not have shareholders or profits.

The "Equity" Section (Assets Minus Liabilities) of a Health Care