73.Which of the following is true regarding revenue recognition for health care organizations?
A)Patient service revenues are reported net of contractual adjustments.
B)Revenues do not include charity care.
C)Revenues may include fees for parking, cafeteria sales, and gift shops.
D)All of the above are true.
74.Which of the following is a required statement for a governmental hospital?
A)Statement of Changes in Fund Balance.
B)Statement of Revenues and Expenditures.
C)Statement of Functional Expense.
D)Statement of Cash Flows.
75.A hospital reported the following uncollectible amounts:
$ 10,000 for services rendered to homeless individuals with no intention of collection.
$ 30,000 for services rendered with the expectation of collection, but which proved to be uncollectible.
What amount should be reported in revenues and provision for bad debt for these items?
A)Revenues: $ 40,000; Provision for Bad Debt: 40,000.
B)Revenues: $ 40,000; Provision for Bad Debt: 30,000.
C)Revenues: $ 30,000; Provision for Bad Debt: 30,000.
D)Revenues: $ 0; Provision for Bad Debt: 0.
76.The difference between accounting for private not-for-profit hospitals and government- owned hospitals is:
A)Government owned hospitals do not have to prepare a Statement of Cash Flows.
B)Government owned hospitals do not have to record depreciation.
C)The equity accounts have different titles and definitions.
D)All of the above.
77.The difference between the financial statements of private not-for-profit hospitals and privatenot-for-profit voluntary health and welfare organizations is:
A)Voluntary health and welfare organizations do not have to prepare a Statement of Cash Flows.
B)Hospitals do not have to prepare a Statement of Functional Expense.
C)Both (a) and (b) above.
D)Neither (a) nor (b) above.
78.Private health care organizations follow _____ standards while governmentally owned health care organizations follow _____ standards.
A) GASB; FASB.
B) FASB; GASB.
C) FASB; FASAB.
D) GASB; FASAB.
79.A private not-for-profit entity estimated its Allowance for Contractual Adjustment. During the next year, the hospital found that the actual total of contractual adjustments applied to receivables on hand at the end of the previous year was $ 5,000 higher than the estimate. How should the difference be reported?
A)The hospital should reduce current period net patient service revenues for the $5,000.
B)The hospital should make a prior period adjustment to retained earnings for $5,000.
C)The hospital should record a current period expense for the $5,000.
D)The hospital should record a “cumulative effect of a change in accounting principle” for the $5,000.
80.Private not-for-profit health care organizations include what categories in the equity section of the Statement of Net Assets?
A)Paid in capital and retained earnings.
B)Unrestricted, temporarily restricted, and permanently restricted.
C)Net investment in capital assets, restricted, and unrestricted.
D) Operating, investing, financing.
81.According to the AICPA
Audit and Accounting Guide: Health Care Organizations,which of the following items should be included in the determination of the performance indicator?
A) Receipt of temporarily or permanently restricted contributions.
B) Items requiring separate display (such as extraordinary items, discontinued operations, and the effect of changes in accounting principle).
C)Premium revenue.
D)None of the above.
82.Which of the following is
false
regarding revenues of health care organizations:
A) Patient service revenues are to be reported net of estimated contractual adjustments in the operating statement.
B) Operating Revenues are often classified as net patient service revenue and other revenue.
C) Patient service revenue includes charge for charity care.
D)Revenues are measured on the accrual basis.