What is adjusted for in the statement of cash flows aside from net income?

The correct answer indicates that the statement of cash flows accounts for changes in current asset and current liability balances in addition to net income. This is crucial because the statement of cash flows aims to provide insight into the actual cash movements within a company, providing a clearer picture of liquidity and cash generation processes.

When preparing the statement of cash flows using the indirect method, adjustments are made to net income to reflect these changes in current assets and liabilities. For example, an increase in accounts receivable signifies that not all income reported has been collected in cash, thus negatively impacting cash flow, while an increase in accounts payable indicates that cash has not yet been expended for expenses incurred. These adjustments help reconcile net income to the cash generated from operating activities, making it clear how operations are affecting cash flow.

The other options do not encapsulate the broader adjustments necessary for a comprehensive view of cash flows. For instance, focusing solely on cash received from patients or non-operating losses overlooks the intricacies of overall cash management and operational impacts. Similarly, considering only tax expenses does not capture the full array of current asset and liability fluctuations that affect cash flow.