True/False Questions
1.Like charities and private colleges, private not-for-profit health care organizations follow FASB standards.
2.Private health care organizations, both not-for-profit and for-profit, follow GASB standards while government healthcare organizations follow FASB.
3.Private for-profit health care organizations follow FASB standards
excluding
those written specifically for not-for-profits.
4. If a health care organization is owned or controlled by a government, it is typically considered a special-purpose entity engaged only in business–type activities and would use proprietary fund accounting.
5.The
AICPA Audit and Accounting Guide: Health Care Organizations
applies equally to private not-for-profit, investor-owned, and governmentally owned health care organizations.
6.As both the FASB and the GASB approved the
AICPA Health Care Guide, its requirements constitute Category B GAAP and must be followed by all health care organizations.
7.Government-owned health care organizations do
not
report depreciation expense.
8.Because they are engaged in business-type activities, governmental health care organizations typically use the accrual basis and economic resources measurement focus.
9.Private-sector health care organizations use the three-category FASB format for the Statement of Cash flows, while public sector organizations use the four-category GASB format
10.Not-for-profit business-oriented organizations use accrual accounting.
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