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a.gross revenue does includes the bad debts and the charity care while the net revenue does gives the deductions of the bad debs and the charity care.
b.charity care is given to those who are unable to pay. while bad debt losses due occur due to failure to pay for certain reasons and the payment is not meant for profit making . in the income statement an increase in bad debts is an expense while a decrease in bad debts is added to the gross profit.
c .depreciation expense refers to the cost of fixed asset matched with the duration of the life time of the fixed asset . the depreciation is caused by corrosion and usage .
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