3.6. a. What is the difference between gross revenues and net revenues? (Hint: Think about contractual allowances/discounts, financial assistance/charity care, and bad debt/implicit price concessions.)

b. What is the difference between patient service revenue and other revenue?

3.7. a. What is meant by the term expense? b. What is depreciation expense, and what is its purpose?

c. What are some other categories of expenses?

3.8. a. What is the difference between operating income and net income?

b. Why is net income called the bottom line?

c. What is the difference between net income and cash flow?

d. Is financial condition more closely related to net income or to cash flow?

3.9. a. What is the purpose of the statement of changes in equity? b. What is its basic format?