There are three components that make up the accounting equation.

Assets = Liabilities + Net Worth 1. Provide at least two examples of assets and liabilities (provide a description of your examples)

Revenues, Expenses, and Cost Classifications Revenue represents the amount earned by an organization due to their business service delivered or products sold. In healthcare, revenue is typically received after services are rendered.

1. What are different sources of healthcare revenue?

2. Although payment for services is received after the services rendered, how does this affect a healthcare organization's expenses? Explain.