The Medical Arts Clinic,a well-established health care organization,received a $1,500,000 pledge in fiscal year 2015 that was restricted to cover operating expenses.The gift was received over two years;$600,000 in the first year and $900,000 in the second year.The following table reflects the funds received as well as the amounts spent on operating the clinic. \[\begin{array}{r} \underline {\text { Fiscal Year Ended }} \quad \quad\\ \begin{array} { l cc } &\text { June 30, 2015 } &\text { June 30,2016 } \\ \text { Gitts received } & \$ 600,000 & \$ 900,000 \\ \text { Clinic operating expenses } & \$ 40,000 & \$ 1,020,000 \end{array} \end{array}\] What should the clinic report as Net Assets Released from Restrictions on the statement of activities for the fiscal year ended June 30,2016?

A) $900,000 B) $960,000 C) $1,020,000 D) $1,500,000 A) $900,000 B) $960,000 C) $1,020,000 D) $1,500,000

Hospital revenue usually includes which of the following? Revenue from $\begin{array}{cc} \underline { \text { Educational Programs } }& \underline { \text {Unrestricted Gitts}} \\ a)\quad \text {Yes}&\text { Yes}\\ b) \quad \text {No }&\text {No}\\ c) \quad \text {Yes}&\text { No}\\ d) \quad \text {No }&\text {Yes}\\ \end{array}$

The answer of Hospital revenue usually includes which of the...

Daniel,an auditor,is performing a routine review of a not-for-profit hospital and notes the following account balances in the statement of activities for the fiscal year ending September 30,2014: $\begin{array}{ll} \text { Gross patient service rev enue from all }&\$ 4,450,000 \\ \text {services at the hosp ital's established }\\ \text { billing rate }\\ \text { Bad debts expense}& \$ 90,000 \\ \text { Contractual ad justments}&\$ 420,000 \\ \end{array}$ What amount should the hospital report as net patient service revenue in its statement of activities for the fiscal year ending September 30,2014?

A) $4,080,000 B) $4,140,000 C) $4,030,000 D) $4,410,000 A) $4,080,000 B) $4,140,000 C) $4,030,000 D) $4,410,000

Exam 14: Health Care Providers

Moore Art Association,a not-for-profit entity,received a cash gift of $10 million.The association trustees decided to use the gift to establish a permanent endowment for the association.The income from the endowment would be used to provide grants to promising sculptors and students of the history of sculpture.The association should report the gift as an increase in

(Multiple Choice)

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Question 21

A hospital estimates that,based on past experience,it will incur $5 million in malpractice claims as a result of services rendered in the current period.The hospital carries a malpractice insurance policy with a yearly $2 million deductible clause.The amount that should appear on its year-end financial statement as Claims Expense Loss)should be

(Multiple Choice)

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Question 22

"Variance power" refers to the ability

(Multiple Choice)

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Question 23

A consortium of physicians agrees to provide services to the employees of a large county government.The agreement calls for monthly payments from the county to the consortium in the amount of $200,000 per month.County employees are not billed for services rendered by the consortium.All county employees are required to use the consortium under their health care program any services rendered to county employees by other physicians are not covered under the health plan).During the month the consortium performed services for county employees for which it would have billed $170,000.The consortium referred patients to other health care providers for services they could not perform.The consortium estimates that patients will be billed $10,000 for those services.The amount of revenue that should be recognized for the month by the consortium is

(Multiple Choice)

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Question 24

The Gulf Coast bank is holding a $750,000 donation in an independent permanent trust with the investment income dedicated for use by Coastal Hospital for operating purposes. The $750,000 principal should be:

(Multiple Choice)

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Question 25

The services of Health Maintenance Organizations are prepaid and fixed.

(True/False)

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Question 26

Capitation fees paid by HMOs to hospitals,physicians,and other medical groups generally are based on the number of persons covered and expected costs to be incurred rather than on actual services provided.

(True/False)

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Question 27

Unlike businesses,not-for-profit health care providers often serve patients who they know will be unable to pay any portion of the amounts billed.

(True/False)

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Question 28

Not-for-profit health care entities must provide information on the three categories of net asset donor restrictiveness.

(True/False)

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Question 29

Unrestricted revenues of a not-for-profit health care organization generally are subdivided into "patient care revenue" and "other revenue." Which of the following revenues would NOT be considered patient care revenue?

(Multiple Choice)

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Question 30

The services of Preferred Provider Organizations are prepaid and fixed.

(True/False)

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Question 31

In the long run,the health of a hospital depends mainly on the demand for its services and the ability to meet that demand at a reasonable cost.

(True/False)

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Question 32

The Medical Arts Clinic,a well-established health care organization,received a $1,500,000 pledge in fiscal year 2015 that was restricted to cover operating expenses.The gift was received over two years;$600,000 in the first year and $900,000 in the second year.The following table reflects the funds received as well as the amounts spent on operating the clinic. June 30, 2015 June 30,2016 Gitts received \ 600,000 \ 900,000 Clinic operating expenses \ 40,000 \ 1,020,000 What should the clinic report as Net Assets Released from Restrictions on the statement of activities for the fiscal year ended June 30,2016?

(Multiple Choice)

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Question 33

The amount of restricted revenue that should be recognized by Pelican in the year of the gift is

(Multiple Choice)

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Question 34

In a not-for-profit health care organization,the cost of malpractice must be accrued if it is either probable that impairment has occurred or if the amount of loss can be reasonably estimated.

(True/False)

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Question 35

In 2013 St.Martin's Hospital received a $50,000 cash gift to be used to buy supplies and other items for the pediatric department of the hospital.In 2014,St.Martin's purchased puppets and other items to be used in explaining medical procedures to young children.The acquisition of the items causes a NET decrease in which classes)of net assets?

(Multiple Choice)

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Question 36

The community hospital of Briarwood normally includes proceeds from sales of meals in its cafeteria as

(Multiple Choice)

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Question 37

Hospital revenue usually includes which of the following? Revenue from a) Yes Yes b) No No c) Yes No d) No Yes

(Short Answer)

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Question 38

Daniel,an auditor,is performing a routine review of a not-for-profit hospital and notes the following account balances in the statement of activities for the fiscal year ending September 30,2014: Gross patient service rev enue from all \ 4,450,000 services at the hosp ital's established billing rate Bad debts expense \ 90,000 Contractual ad justments \ 420,000 What amount should the hospital report as net patient service revenue in its statement of activities for the fiscal year ending September 30,2014?

(Multiple Choice)

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Question 39

A "term endowment" is a gift with donor specifications whereby

(Multiple Choice)

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Question 40

Showing 21 - 40 of 44

"Variance power" refers to the ability

The Gulf Coast bank is holding a $750,000 donation in an independent permanent trust with the investment income dedicated for use by Coastal Hospital for operating purposes. The $750,000 principal should be:

The services of Health Maintenance Organizations are prepaid and fixed.

Capitation fees paid by HMOs to hospitals,physicians,and other medical groups generally are based on the number of persons covered and expected costs to be incurred rather than on actual services provided.

Unlike businesses,not-for-profit health care providers often serve patients who they know will be unable to pay any portion of the amounts billed.

Not-for-profit health care entities must provide information on the three categories of net asset donor restrictiveness.

Unrestricted revenues of a not-for-profit health care organization generally are subdivided into "patient care revenue" and "other revenue." Which of the following revenues would NOT be considered patient care revenue?

The services of Preferred Provider Organizations are prepaid and fixed.

In the long run,the health of a hospital depends mainly on the demand for its services and the ability to meet that demand at a reasonable cost.

The amount of restricted revenue that should be recognized by Pelican in the year of the gift is

In a not-for-profit health care organization,the cost of malpractice must be accrued if it is either probable that impairment has occurred or if the amount of loss can be reasonably estimated.

The community hospital of Briarwood normally includes proceeds from sales of meals in its cafeteria as

Hospital revenue usually includes which of the following? Revenue from a) Yes Yes b) No No c) Yes No d) No Yes

A "term endowment" is a gift with donor specifications whereby

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