What does the cash flow statement reveal in a healthcare entity?

• A. It shows assets and liabilities at a point in time.
• B. It reports revenues and expenses over a period.
• C. It shows cash receipts and payments categorized by operating, investing, and financing activities over a period.
• D. It measures the efficiency of codes and claims processing.

Answer: (C)

The cash flow statement reveals how cash moves in and out of a healthcare entity over a period, broken into three activities: operating, investing, and financing. It shows cash receipts and payments, such as patient receipts and payments to suppliers or staff (operating), purchases and sales of long‑term assets like equipment (investing), and borrowings, repayments, or owner contributions (financing). This helps you see whether the organization generates enough cash from its core operations to fund growth and meet obligations, and how it finances its activities.

Why the other options don’t fit: showing assets and liabilities at a point in time is the balance sheet; reporting revenues and expenses over a period is the income statement; and measuring codes and claims processing efficiency is not about cash flow.