Question 1

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 
B)  Contractual adjustments with insurance companies are reported as an operating expense 
C)  Both of the above 
D)  Neither of the above 
A)  Charity care is reported as operating revenue 
B)  Contractual adjustments with insurance companies are reported as an operating expense 
C)  Both of the above 
D)  Neither of the above

Question 2

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

Accepted Answer

A)  GASB; FASB 
B)  FASB; GASB 
C)  FASB; FASAB 
D)  GASB; FASAB 
A)  GASB; FASB 
B)  FASB; GASB 
C)  FASB; FASAB 
D)  GASB; FASAB

Question 3

For accounting purposes, health care organizations include HMOs and individual medical practitioners, as well as hospitals.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding the financial statements of a private sector nonprofit hospital?

Accepted Answer

A)  Revenues are measured using the accrual basis of accounting 
B)  Changes in net assets must be shown by net asset class 
C)  The Statement of Cash Flows uses a three-category format 
D)  All of the above are true 
A)  Revenues are measured using the accrual basis of accounting 
B)  Changes in net assets must be shown by net asset class 
C)  The Statement of Cash Flows uses a three-category format 
D)  All of the above are true

Question 7

Government owned hospitals follow FASB Statements 116 and 117.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

Hospitals may be for profit commercial b

Question 9

The Audit and Accounting Guide identifies which of the following items that should NOT be included in the determination of the performance indicator?

Accepted Answer

A)  Receipt of temporarily or permanently restricted contributions 
B)  Items requiring separate display (such as extraordinary items, discontinued operations and the effect of changes in accounting principle 
C)  Both A and B 
D)  Neither A nor B 
A)  Receipt of temporarily or permanently restricted contributions 
B)  Items requiring separate display (such as extraordinary items, discontinued operations and the effect of changes in accounting principle 
C)  Both A and B 
D)  Neither A nor B

Question 10

Answer the following questions:
(a) Other than a 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 11

nOrganizations that are legally nonprofit and raise a significant amount of resources from voluntary contributions or grants are ___________.

Accepted Answer

A)  Health care organizations 
B)  Voluntary health and welfare organizations 
C)  Subject to the Not-for-Profit Guide 
D)  Both B and C 
A)  Health care organizations 
B)  Voluntary health and welfare organizations 
C)  Subject to the Not-for-Profit Guide 
D)  Both B and C

Question 12

St. John's is a private not-for-profit hospital. At the end of December 2008, a donor pledged to make five payments of $50,000 each, on January 1, 2009, 2010, 2011, 2012 and 2013 to pay for operations in those years. The present value of these payments is $210,618, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2008 and 2009.

Accepted Answer

The answer of St. John's is a private not-for-profit hospital....

Question 13

The AICPA Audit and Accounting Guide: Health Care Organizations applies equally to private not-for-profit, governmentally owned and investor-owned health care organizations.

Accepted Answer

A) True 
 B)False

Question 14

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

Accepted Answer

A)  Fiduciary, Proprietary and General 
B)  Reserved, Unreserved and Undesignated 
C)  Invested in Capital Assets Net of Related Debt, Restricted and Unrestricted 
D)  Permanently Restricted, Temporarily Restricted and Unrestricted 
A)  Fiduciary, Proprietary and General 
B)  Reserved, Unreserved and Undesignated 
C)  Invested in Capital Assets Net of Related Debt, Restricted and Unrestricted 
D)  Permanently Restricted, Temporarily Restricted and Unrestricted

Question 15

Which of the following is true regarding revenue recognition for health care organizations?

Accepted Answer

A)  Patient service revenue is reported net of contractual adjustments 
B)  Patient service revenue includes an imputed charge for charity care 
C)  Both of the above 
D)  Neither of the above 
A)  Patient service revenue is reported net of contractual adjustments 
B)  Patient service revenue includes an imputed charge for charity care 
C)  Both of the above 
D)  Neither of the above

Question 16

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 17

Identify the three types of restrictions placed on temporarily restricted net assets of a private sector not-for-profit health care organization and outline the accounting requirements for each type.

Accepted Answer

Time Restricted: Contributions (includin

Question 18

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

Accepted Answer

A)  Private not-for-profit health care organizations 
B)  Governmentally owned health care organizations 
C)  Investor-owned health care organizations 
D)  All of the above 
A)  Private not-for-profit health care organizations 
B)  Governmentally owned health care organizations 
C)  Investor-owned health care organizations 
D)  All of the above

Question 19

Which of the following health care organizations have level "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 of the above 
D)  Neither of the above 
A)  Cook County Hospital, a department of Cook County 
B)  Kishwaukee Hospital, a nongovernmental, not-for-profit hospital 
C)  Both of the above 
D)  Neither of the above

Question 20

A "performance indicator" is required in the Statement of Operations for health care entities. Which of the following must be reported below that performance indicator?

Accepted Answer

A)  Other revenue, such as parking lot or cafeteria revenue 
B)  Net assets released from restrictions for operating purposes 
C)  Both of the above 
D)  Neither of the above 
A)  Other revenue, such as parking lot or cafeteria revenue 
B)  Net assets released from restrictions for operating purposes 
C)  Both of the above 
D)  Neither of the above

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

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

For accounting purposes, health care organizations include HMOs and individual medical practitioners, as well as hospitals.

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

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

Which of the following is true regarding the financial statements of a private sector nonprofit hospital?

Government owned hospitals follow FASB Statements 116 and 117.

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

The Audit and Accounting Guide identifies which of the following items that should NOT be included in the determination of the performance indicator?

nOrganizations that are legally nonprofit and raise a significant amount of resources from voluntary contributions or grants are ___________.

The AICPA Audit and Accounting Guide: Health Care Organizations applies equally to private not-for-profit, governmentally owned and investor-owned health care organizations.

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

Which of the following is true regarding revenue recognition for health care organizations?

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

Identify the three types of restrictions placed on temporarily restricted net assets of a private sector not-for-profit health care organization and outline the accounting requirements for each type.

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

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

A "performance indicator" is required in the Statement of Operations for health care entities. Which of the following must be reported below that performance indicator?

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 Trust Funds

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

Filters

Exam 12: Accounting for Hospitals and Other Health Care Providers

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

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

For accounting purposes, health care organizations include HMOs and individual medical practitioners, as well as hospitals.

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

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

Which of the following is true regarding the financial statements of a private sector nonprofit hospital?

Government owned hospitals follow FASB Statements 116 and 117.

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

The Audit and Accounting Guide identifies which of the following items that should NOT be included in the determination of the performance indicator?

nOrganizations that are legally nonprofit and raise a significant amount of resources from voluntary contributions or grants are ___________.

The AICPA Audit and Accounting Guide: Health Care Organizations applies equally to private not-for-profit, governmentally owned and investor-owned health care organizations.

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

Which of the following is true regarding revenue recognition for health care organizations?

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

Identify the three types of restrictions placed on temporarily restricted net assets of a private sector not-for-profit health care organization and outline the accounting requirements for each type.

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

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

A "performance indicator" is required in the Statement of Operations for health care entities. Which of the following must be reported below that performance indicator?

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 Trust Funds

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

Filters

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