Exam 12: Accounting for Hospitals and Other Health Care Providers

Which of the following is not correct with respect to reporting of patient service revenue for health care organizations?

Government-owned health care organizations do not report depreciation expense.

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?

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

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.

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

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

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

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

The AICPA Health Care Guide prescribes a separate Statement of Operations and Statement of Changes in Net Assets rather than a Statement of Activities.

The level of charity care is included in revenue and should be disclosed in the notes to financial statements.

What is the basis of accounting for hospitals and other health care organizations,and what organizations are responsible for setting Category A GAAP?

St.David's is a not-for-profit business-oriented hospital. What is the journal entry for the following transaction: Cash was received for pledges made in the prior year in the amount of $85,000. That amount has been recorded as temporarily restricted net assets,based on time restrictions.

The AICPA Health Care Guide applies to investor-owned,private not-for-profit,and government-owned hospitals.

The statement reflecting revenues,expenses,and other changes in unrestricted net assets for a private sector,not-for-profit hospital is called the:

Not-for-profit health care entities are distinguished from voluntary health and welfare organizations in the following manner:

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:

Which of the following is a required statement for a governmental hospital?

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

A private sector,not-for-profit hospital received a pledge of $150,000 in 2014 to be used for a building to be constructed in 2015 but contingent on the hospital being able to raise an equivalent amount from other donors.As of the end of 2014,half the amount had been raised from other donors. In 2015,the hospital raised the amount from other donors. The donor gave the $150,000 to the hospital in 2015 and the building was completed in 2016. In which year should the hospital recognize the $150,000 from the pledge?