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

Question

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For-profit, not-for-profit, and governmental health care organizations each has unique net assets or equity structure. A for-profit organization will have capital stock and retained earnings in its equity section of the balance sheet; a not-for-profit organization will report net assets classified as unrestricted, temporarily restricted or permanently restricted; and a governmental health care organization (according to GASBS 34) will report net assets-invested in capital assets, net of related debt; restricted, or unrestricted.

The Net Assets or Equity Section of a Health Care