Question 1

Private for-profit health care organizations follow FASB standards excluding those written specifically for not-for-profits.

Accepted Answer

A) True 
 B)False

Question 2

Because they are engaged in business-type activities,governmental health care organizations typically use the accrual basis and economic resources measurement focus.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following health care organizations have " Category B" GAAP established by the AICPA's Audit and Accounting Guide: Health Care Organizations?

Accepted Answer

A)  Cook County Hospital, a department of Cook County. 
B)  Kishwaukee Hospital, a nongovernmental, not-for-profit hospital. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above. 
A)  Cook County Hospital, a department of Cook County. 
B)  Kishwaukee Hospital, a nongovernmental, not-for-profit hospital. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above.

Question 4

Answer the following questions:
(a)Other than a Statement of Financial Position (i.e.balance sheet),what are the remaining financial statements required of private not-for-profit health care entities?
(b)What accounts appear in the equity section of the balance sheet of commercial hospitals,government owned hospitals,and private not-for-profit hospitals?

Accepted Answer

(a)Health care entities are required to

Question 5

Identify income items which should not be included in the determination of the performance indicator by a hospital

Accepted Answer

a)Transactions with the owners,other tha

Question 6

St.David's is a not-for-profit business-oriented hospital.What is the journal entry for the following transaction: During the month,gross patient service revenue amounted to $92,656 of which $81,650 was received in cash.Contractual adjustments to third-party payers amounted to $10,000.

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 7

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

Accepted Answer

A) True 
 B)False

Question 8

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

Accepted Answer

A) True 
 B)False

Question 9

Not-for-profit business-oriented organizations use modified accrual accounting.

Accepted Answer

A) True 
 B)False

Question 10

Investor owned health care organizations have the following equity section accounts:

Accepted Answer

A)  Paid in capital and retained earnings. 
B)  Restricted and unrestricted net assets. 
C)  Unrestricted, temporarily restricted, and permanently restricted net assets. 
D)  Invested in capital assets net of related debt, restricted, and unrestricted net assets. 
A)  Paid in capital and retained earnings. 
B)  Restricted and unrestricted net assets. 
C)  Unrestricted, temporarily restricted, and permanently restricted net assets. 
D)  Invested in capital assets net of related debt, restricted, and unrestricted net assets.

Question 11

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Accepted Answer

A)  Charity care is reported as operating revenue at the normal and customary rate and bad debt expense is reported for an equal amount. 
B)  Contractual adjustments with insurance companies are reported as a reduction in patient service revenue. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above. 
A)  Charity care is reported as operating revenue at the normal and customary rate and bad debt expense is reported for an equal amount. 
B)  Contractual adjustments with insurance companies are reported as a reduction in patient service revenue. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above.

Question 12

Private health care organizations,both not-for-profit and for-profit,follow FASB standards while government healthcare organizations follow GASB.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding the reporting of expenses by private sector,not-for-profit hospitals?

Accepted Answer

A)  All expenses are considered reductions in unrestricted net assets. 
B)  Expenses must be reported by natural (i.e. salaries, supplies, etc.) classification in the statements. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above. 
A)  All expenses are considered reductions in unrestricted net assets. 
B)  Expenses must be reported by natural (i.e. salaries, supplies, etc.) classification in the statements. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above.

Question 14

During the month of December,Godiva Hospital billed patients $45,000,billed 3rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable?
A) $120,000.
B) $110,000.
C) $ 65,000.
D) $ 45,000.

Accepted Answer

Question 15

An unrestricted balance sheet category used in health care reporting to show limitations on the use of assets due to bond covenant restrictions and governing board plans for future use is called:

Accepted Answer

A)  Permanently restricted net assets. 
B)  Temporarily restricted net assets. 
C)  Assets whose use is limited. 
D)  Unrestricted net assets. 
A)  Permanently restricted net assets. 
B)  Temporarily restricted net assets. 
C)  Assets whose use is limited. 
D)  Unrestricted net assets.

Question 16

Charity care is reported as both revenue and expense (bad debt)in the Statement of Operations.

Accepted Answer

A) True 
 B)False

Question 17

Record the following transactions on the books of St.Marie's Hospital,a private not-for-profit hospital.
(a)The Hospital billed patients $612,000 for services rendered.Of this amount,4.5% is expected to be uncollectible.Contractual adjustments with insurance companies are expected to total $87,000.
(b)The Hospital received $500,000 in pledges of support in a campaign undertaken to purchase new MRI equipment.All of the pledges are payable within one year and 8% are expected to be uncollectible.
(c)Charity care in the amount of $36,000 (at standard charges)was performed on an indigent patient.
(d)The Hospital collected $487,200 for the services performed in (1)above.Actual contractual adjustments for these services amounted to $89,700.$ 15,900 of receivables were identified as uncollectible and written off.

Accepted Answer

The answer of Record the following transactions on the books...

Question 18

When accounting for health care organizations,services provided for charity care are:

Accepted Answer

A)  Recorded as revenues but the costs are expensed as normal. 
B)  Not recorded as revenues and the costs are expensed as normal. 
C)  Not recorded as revenues and the costs are not expensed. 
D)  None of the above. 
A)  Recorded as revenues but the costs are expensed as normal. 
B)  Not recorded as revenues and the costs are expensed as normal. 
C)  Not recorded as revenues and the costs are not expensed. 
D)  None of the above.

Question 19

Which of the following is correct with respect to the recording of charity care for health care organizations?

Accepted Answer

A)  Revenues are not recorded for the value of charity care services provided, but related expenses are included with other expenses on the Statement of Operations 
B)  Charity care is recorded as revenue and an adjustment is recorded for the difference between the value of the revenue and expenses incurred in providing health care services. 
C)  The value of foregone charity care revenue is deducted as a charitable contribution expense in the Statement of Operations 
D)  Management's policy for providing charity care and the level of charity care provided is an optional disclosure 
A)  Revenues are not recorded for the value of charity care services provided, but related expenses are included with other expenses on the Statement of Operations 
B)  Charity care is recorded as revenue and an adjustment is recorded for the difference between the value of the revenue and expenses incurred in providing health care services. 
C)  The value of foregone charity care revenue is deducted as a charitable contribution expense in the Statement of Operations 
D)  Management's policy for providing charity care and the level of charity care provided is an optional disclosure

Question 20

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

Accepted Answer

A)  GASB. 
B)  FASB, excluding standards specifically for not-for-profits. 
C)  FASB, including standards specifically for not-for-profits. 
D)  None of the above. 
A)  GASB. 
B)  FASB, excluding standards specifically for not-for-profits. 
C)  FASB, including standards specifically for not-for-profits. 
D)  None of the above.

Private for-profit health care organizations follow FASB standards excluding those written specifically for not-for-profits.

Because they are engaged in business-type activities,governmental health care organizations typically use the accrual basis and economic resources measurement focus.

Which of the following health care organizations have " Category B" GAAP established by the AICPA's Audit and Accounting Guide: Health Care Organizations?

Identify income items which should not be included in the determination of the performance indicator by a hospital

St.David's is a not-for-profit business-oriented hospital.What is the journal entry for the following transaction: During the month,gross patient service revenue amounted to $92,656 of which $81,650 was received in cash.Contractual adjustments to third-party payers amounted to $10,000.

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

Not-for-profit business-oriented organizations use modified accrual accounting.

Investor owned health care organizations have the following equity section accounts:

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Private health care organizations,both not-for-profit and for-profit,follow FASB standards while government healthcare organizations follow GASB.

Which of the following is true regarding the reporting of expenses by private sector,not-for-profit hospitals?

During the month of December,Godiva Hospital billed patients $45,000,billed 3^rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable? A) $120,000. B) $110,000. C) $ 65,000. D) $ 45,000.

An unrestricted balance sheet category used in health care reporting to show limitations on the use of assets due to bond covenant restrictions and governing board plans for future use is called:

Charity care is reported as both revenue and expense (bad debt)in the Statement of Operations.

When accounting for health care organizations,services provided for charity care are:

Which of the following is correct with respect to the recording of charity care for health care organizations?

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 12: Accounting for Hospitals and Other Health Care Providers

Private for-profit health care organizations follow FASB standards excluding those written specifically for not-for-profits.

Because they are engaged in business-type activities,governmental health care organizations typically use the accrual basis and economic resources measurement focus.

Which of the following health care organizations have " Category B" GAAP established by the AICPA's Audit and Accounting Guide: Health Care Organizations?

Identify income items which should not be included in the determination of the performance indicator by a hospital

St.David's is a not-for-profit business-oriented hospital.What is the journal entry for the following transaction: During the month,gross patient service revenue amounted to $92,656 of which $81,650 was received in cash.Contractual adjustments to third-party payers amounted to $10,000.

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

Not-for-profit business-oriented organizations use modified accrual accounting.

Investor owned health care organizations have the following equity section accounts:

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Private health care organizations,both not-for-profit and for-profit,follow FASB standards while government healthcare organizations follow GASB.

Which of the following is true regarding the reporting of expenses by private sector,not-for-profit hospitals?

During the month of December,Godiva Hospital billed patients $45,000,billed 3rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable? A) $120,000. B) $110,000. C) $ 65,000. D) $ 45,000.

An unrestricted balance sheet category used in health care reporting to show limitations on the use of assets due to bond covenant restrictions and governing board plans for future use is called:

Charity care is reported as both revenue and expense (bad debt)in the Statement of Operations.

When accounting for health care organizations,services provided for charity care are:

Which of the following is correct with respect to the recording of charity care for health care organizations?

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

During the month of December,Godiva Hospital billed patients $45,000,billed 3^rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable? A) $120,000. B) $110,000. C) $ 65,000. D) $ 45,000.