Gross revenue and net revenue

Respond to the following:

 

  • Select two different types of HCOs and consider the most positive and most negative effects of using the cash versus accrual accounting method for the business. Additionally, include the effect of the choices on revenue recognition and matching principles.
  • Compare and contrast the following items, pointing out their key elements:
    • Gross revenue and net revenue
    • Patient service revenue and other revenue
    • Charity care and bad debt losses on the income sheet

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