Exam 12: Accounting for Hospitals and Other Health Care Providers

Identify the three types of temporary restrictions placed on contributions to a private sector not-for-profit health care organization and outline the accounting requirements for each type.

Private health care organizations follow _____ standards while governmentally owned health care organizations follow _____ standards.

Both public and private sector health care organizations measure transactions and events similarly,but use different equity accounts.

The equity section of the Statement of Net Assets of a government-owned hospital may contain which of the following descriptions?

Which of the following is/are true with respect to health care organizations?

What are the components of the equity section of the Balance Sheet of Statements of Net Assets,as appropriate for the following types of organizations? •Not-for-profit,Business-Oriented Organizations •Investor-Owned Health Care Enterprises •Government Health Care Organizations

If a clinic raises a significant amount or nearly all their resources from voluntary contributions or grants,they are subject to the guidance in the AICPA:

The AICPA Audit and Accounting Guide: Health Care Organizations applies to:

The AICPA Health Care Guide provides additional guidance regarding accounting and reporting requirements for voluntary health and welfare organizations.

With respect to health care organizations,private sector not-for-profit health care entities must disclose expenses by functional classifications.

Patient service revenue for a hospital does not include charges for charity care.

The AICPA Audit and Accounting Guide: Health Care Organizations provides reporting requirements for all of the following organizations except:

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 bad debt expense for these items?

Private not-for-profit health care organizations follow standards set by:

A private sector not-for-profit hospital received a gift of $250,000 cash on the first day of 2014 with a donor restriction that the resources be used to purchase certain equipment.The equipment was purchased on the same day and is expected to last five years with no salvage value.The Statement of Financial Position as of December 31,2014 would reflect as net assets of:

The difference between the financial statements of private not-for-profit hospitals and private not-for-profit voluntary health and welfare organizations is:

A donor pledged $500,000 to a not-for-profit hospital in 2013 to conduct medical research,conditional on the hospital raising $500,000 from other donors.The other donors met the condition in 2014.The donor transferred the funds to the hospital in 2014.In which year would the revenue be recognized?

Which of the following is false regarding revenues of health care organizations:

As both the FASB and the GASB approved the AICPA Health Care Guide,its requirements constitute Category A GAAP and must be followed by all health care organizations.

Assume you are reviewing the financial statements of a not-for-profit hospital.Where would you find the account "Assets whose use is limited" and how is it used?